In this paper, multilevel logistic regression models are developed for examining the hierarchical effects of contraceptive use and its selected determinants in Oman using the 2008 Oman National Reproductive Health Survey (ONRHS). Comparison between single level and multilevel logistic regression models has been made to examine the plausibility of multilevel effects of contraceptive use. From the multilevel logistic regression model analysis, it was found that there is real multilevel variation among contraceptive users in Oman. The results indicate that a multilevel logistic regression model is the best fit over ordinary multiple logistic regression models. Generally, this study revealed that women’s age, education, number of living children and region of residence are important factors that affect contraceptive use in Oman. The effect of regional variation for age of women, education of women and number of living children further implies that there exists considerable differences in modern contraceptive use among regions, and a model with a random coefficient or slope is more appropriate to explain the regional variation than a model with fixed coefficients or without random effects. The study suggests that researchers should use multilevel models rather than traditional regression methods when their data structure is hierarchal.