Background: Teaching hospital plays important role in clinical teaching, which is the essential part in the medical education. Learning environment in the clinical setting should be conducive enough in order to obtain the objectives of clinical rotation. Objective: To find out how far resources of the teaching hospitals of Faculty of Medicine UMY have reached standard of medical education and to find out how far learning environment in the teaching hospitals of Faculty of Medicine UMY have been met the ideal learning environment Method: Cross sectional study was conducted in among six teaching hospitals of FM UMY and medical students who did clinical rotation in those teaching hospitals. Resources of clinical teaching were obtained from the standardized form of accreditation. Students’ perception of learning environment in the clinical setting was obtained from the standardized questionnaire of FM UGM. The components of learning environment studied were: autonomy, supervision, social support, workload, job description, learning priority, and variation. The study was done in January 2009. Results and discussion: Data was summarized using SPSS for Windows, version 14.0. As many as 150 clinical students sent back the questionnaire, with response rate 94%. The respondents were 41.3% of total clinical students of FM UMY. The data showed that the resources of clinical teaching in six teaching hospitals of FM UMY, generally, had met the standard of medical education, except for library, study room, and facilitation during night shift. Students said that learning environment in those teaching hospitals were good enough (range mean 3.44 – 3.99). Learning priority reached highest mark. Conclusion and suggestion: The resources of the teaching hospitals of Faculty of Medicine UMY some have reached standard of medical education, some do not yet. The learning environment in the teaching hospitals of Faculty of Medicine UMY may good enough. We suggest that that clinical staffs in the teaching hospitals of FM UMY plays important role for the learning environment in the clinical teaching.