The major purpose of this study was to understand the psychosocial and educational challenges ofrnstudents of Manjo ethnic groups and assess the existing support system. A case study method was employed. Six students of Manjo ethnic groups, four teachers, two school principals and Head of Woreda Education Office were participated ill the study. Data was obtained via semi-structured interview, observation and Focused Group Discussion. The findings discovered that the traditional harmful practice of rejecting and looking down at Manjo community was still vivid. Hence, Manjo community members were despised and undermined by their non Manjo peers and their psychological well-being was threatened. As a result, lack of self-confidence, frustration, fear, and feeling of inferiority, mistrust and depression were manifested in the everyday lives of the Manjo children. In addition, the continuous socialrnstigma and exclusion had made their life bitter, sorrowful and full of intimidation in some case.s ending up with suicidal ideation. Aside from their psychosocial pains, Manjo children suffer from economic problem including getting enough food and school supplies. Moreover, they hope problems related tornschool zoning, marriage by abduction, poor parent-school and teacher-student interaction which ultimately lead to their plight. The study concluded that, students of Manjo ethnic groups are surrounded by many alarming circumstances that made their schooling at risk. Hence, unless some correctivernmeasures are taken, the bitter sentiments and miseries of these students could be aggravated and may leads to a never ending conflict between the Manjo and Non- Manjo people. Thus economic empowerment, Psychological intervention through guidance and counseling, continuous education andrnawareness raising, building a school and introduction of school feeding program were some of the recommendations forwarded.