An ethnobotanical study was conducted from February to March 2008 to investigate the traditional uses and system of managing of the Dess’a forest by people in and around the forest. The aim of this study was to identify and document the traditional knowledge held by the local people in using and managing the forest resources. Seven forest Kushtes (village) very close to and within the forest area were purposively selected. Ninety-two informants comprising of 74 % (68) males and 26% (24) females were randomly selected for the study. Based on the community recommendations fifteen key informants with 73 % (11) males and 27 % (4) females were selected purposefully. Information was collected using semi-structured interview, direct matrix ranking and scoring, preference raking, pair wise ranking and focus group discussion. A total of 82 plants belonging to 65 genera and 43 families were recorded. The families best represented were Fabaceae (6 species), Lamiaceae and Solanaceae (5 species each) and Tiliaceae (4 species). Based on the results from the informant consensus, Olea europaea subsp cuspidata and Acacia etbaica are the most popular among the local people for their value. The results further indicated that the use categories animal fodder and bee forage scored 68% each followed by firewood 45%. Of the utilized growth habits shrubs account 62.19%. The most frequently used plant parts were leaves and nectar/pollen 20.89% each followed by stem 19.40%. The species O. europaea subsp cuspidate, A. etbaica, Boscia salicifolia, Erica arborea and Cordia africana are the 1st, 2nd, 3rd and 4th multipurpose forest plants respectively. The findings showed that the local people have held forest management systems through unique grazing area strategies for plough-oxen and open access to all other livestock. The forest trees are also used to hang beehives. The forest resources are exclusively held by the community and no external bodies are allowed to use which is important in biological conservation. Fire hazard, fuelwood collection and use of building materials were ranked 1st, 2nd and 3rd priority management problems in the study area. Based on the informants’ perception, Erica arborea, Boscia salicifolia and Cordia africana and Dracaena ellenbeckiana are the first, second and third locally threatened species respectively. The study generally shows the local people depend on the forest for their livelihoods. Currently, the traditional forest management is eroding due to population growth, which negatively affects the forest protection and management. Therefore, this study has tried to find out the traditional forest resource xi management systems and the main forest management problems and can contribute for the development of new forest management plan and forest protection strategies. Key words: Dess’a forest, Ethnobotany, Management, Threatened species.