Deforestation and soil degradation are serious sustainability challenges in many countries of Sub-Sahara Africa such as Ethiopia. Rapid socioeconomic change is a key underlying factor for the unsustainable use and management of natural resources. However, there is a number of well-established resource management systems and a wealth of local experience in maintaining and managing natural resources. This study explores the indigenous and local knowledge (ILK) practices for managing soil, forestland, grazing land, and farmland at the Gamo Highland of southwestern Ethiopia. Field observation, household surveys, focus groups discussions, and expert interviews were conducted to identify the different indigenous practices for managing natural resources in the area. Primary and secondary data were used to identify various relevant ILK practices such as terraces, intensive cultivation systems using drought tolerant species, soil management practices (e.g., manuring and fallowing), and a series of social norms and regulations to preserve sacred forest and manage grasslands. All these practices reflect the cumulative application of ILK over long periods of time, for the effective use and management of natural resources. However, the implementation of such ILK practices has been declining recently due to various factors such as land scarcity, labour shortages, shifts in rural livelihood options, and government policies. However, such indigenous management practices should be preserved and promoted through the integration of ILK with scientific approaches to ensure the design and implementation of socially acceptable resource management systems to ensure the long-term sustainability of the Gamo Highland.