To ensure sufficient alternative energy for future, considering renewable energy is an idearnwith no question. Having said this, Ethiopia is a country blessed with different kinds ofrnrenewable energy resources. One of the most effective renewable energy in Ethiopia isrnhydropower, which uses hydraulic turbines to generate electricity. rnAccording to the way of energy transfer, there are two types of hydraulic turbines namelyrnimpulse turbines and reaction turbines. From impulse turbine, Pelton turbine has an excellentrnestablishment of micro-hydroelectric power plant, due to its simple construction and ease ofrnmanufacturing. However, there is no local company or institute, which manufactures hydrornturbines yet. Having this in mind, localization and manufacturing of hydro turbines plays arncrucial role economically for the development of the power sector in Ethiopia. rnThis study aims in manufacturing and performance lab testing analysis of Pelton turbine withrnspecification of Power of 2KW, flow rate of 20.8 Lit/sec, height of 13.3m and Pitch CirclernDiameter (PCD) of 212mm, in order to develop a manufacturing manual while helpingrnlocalize renewable energy technologies in hydropower sector. rnSOLIDWORKS and Matlab software, 3D printing, sand casting, lathe machine, weldingrnmachine and drilling machines were used to manufacture the turbine according to the designrnresults. rnFrom this study, the manufactured turbine has an overall efficiency of 54.09%, which isrn3.41% less from the expected theoretical value at 75% valve opening. Hence, micro hydrornPelton turbine was able to manufacture and then manufacturing manual was developed.rnFinally, laboratory test results have been evaluated and good agreement between performancerncurves of simulation and experimental test at designed turbine speed. This shows thernmanufactured Pelton turbine is effectively fabricated locally and thus the fabricationrnmethodology followed could be used as a manufacturing manual for local developers. Thernvariation between theoretical and experimental test result and simulation with experimentalrntest result was occurred due to quality of manufacturing (especially casting of bucket) andrninconvenience test rig at AAiT.