This ethnographic study was conducted to explore the role of Indigenous knowledgernsystems in dairy production in Gw'gale and Selenwuha kebeles of Alamata wereda, TornIhis em/. 40 dair)! producers were purposejit/()I selected ,And they were studied Ihroughrndirect observation, key informants,focus group discussion and in-depth interviews forrn"llII ost three consecutive months. In both villages, it was identified that traditional mixedrnlivestock-crop production was practiced. This study reveals that dailY producers employrnsuch local knowledge as color of the skin, breast, tail and stature, breed type, health, feedrnintake, productivity of milk, age, price, and agI'o ecology to select desirable breeds.rnNatural mating is predominantly practiced along with insignificant artificialrnillSeminatioll. Based on such diagnostic skills as knowledge on symptoms of diseases,rncouses of diseases, seasons of diseases and species affected, daily producers employrnelh llo veteril/(II), praelices tofight against diseases that attack their animals. Dail)'rnproducers provide their dail)! ca ttle with conventional and non-conventional feeds. Thernmajor sources of water include: rivers, pipe water, dams and wells Rangeland andrnNatural Resources are administered by a body known as Abohagay or Shimagle Adi.rnlvIilking in Ihe study area is predominantly handled by men. Milk, dung, hide, and hornrn(fre locall)! processed in to economically important products. Butter, Ergo, and WholernlIIilk as the lIIajor primC/l)1 delil)1 products for income generatiol/ are sold in. the informalrnlIIarket direclly 10 COl/sumers. Price and demand have been dictated by such factors asrns('ason, access to the markel, fasting, festivals etc. Costs and Returns are nol recordedrn(filii anal)!zed. The traditional dairy production process is being constrained by slichrnchallenges as anilllal feed shortages, land fragmentation, discouraging marketingrnSl 'slems, inadequate veterinCllY services, lack of training, poor extension services, etc. As resuli. Ihe svstCII1 is characlerized hv low produclivity. For the productivity of thernproduction system, therefore, Indigenous Knowledge Systems shouldfurther be studiedrnalld integrated with lIIodern dailr production system in general