Ethiopian farmers’ indigenous knowledge on the management of trees and their contribution to improving the farmers’ livelihoods has no extensive literature. The object of this study is to record indigenous knowledge of tree management and the role of trees in the farmers’ livelihoods. Farmers use tree seedlings from natural regenerations, cuttings and coppice and practise tree pollarding and lopping. Trees supply fuelwood, timber, poles, fodder and human and veterinary medicines, play a part in honey production and are a source of income, as well as having cultural value. Farmers have a fund of indigenous knowledge of managing trees in the farming systems and trees provide invaluable support to their livelihoods.