This paper deals with clustering of small scale metalworking industries in Oromia Special Zonern(OSZ). Clustering is a group of small firms operating in a defined geographic location, producingrnsimilar products, cooperating and competing with one another, learning from each other in orderrnto overcome internal problems, setting common strategies to overcome external challenges, andrnreaching distance market through developed networks. In order to attain benefits of cluster,rnindustries are identified along with problems facing them by in depth interviews, discussions andrnquestionnaires. These results are supported by literatures published and unpublished. The paperrnalso addresses the background of OSZ with respect to industries. The industries are identified byrnthe selective methodology with their performances based on number of workers, capital andrnvalue additions. Each location of industries is marked by Geographical Positions System andrnlocated the projections on Archi-Geographic Information System software in the worldrngeographical positions. The industries are evaluated whether the naturally are following or notrnwith their actual trends. The exact geographical location of a cluster for industries identified isrnplaced by using gravity location systems on Microsoft Excel solver tool. By methods of modelrndevelopment for the cluster the model is developed and hence the growth paths of a cluster byrnevaluating value chain and stakeholders of industries that had direct or indirect linkages withrnindustries for continuous growth of cluster. Besides, the internal processes are modeled usingrnbasic processes. With the specified principles of clustering, Ethiopian clusters are evaluated andrnargued in relation to infrastructure, technology, skilled manpower, information and e-commerce.rnThe gap left by cluster- based strategies is filled by policy recommendations. The overall datarnand inputs are analyzed in relation to cluster performances are summarized in a meaningfulrnmanner. Trade-offs between clustering and scaling up in fast transferring of technology inrnEthiopia is also discussed. The whole results and findings are tied under summary of the majorrnfindings. Finally, the paper ends with conclusions and suggesting the possible solutions to thernproblem for the gaps remained void in the paper.