Mačakel is one of the twenty-one Wäräda found in East Gojjam zone under the recent Amhara regional administrative structure. It is one of the largest and prosperous regions, endowed with abundances of natural and man-made resources, believed to be the most comfortable area for human settlement. An attempt to control such natural resources among different social forces in the Wäräda exasperated serious turbulence, forced the community to look for a robust mediating body to manage their relation through time. This endless effort resulted in the birth of what we call the traditional justice system with its promiscuous social institutions based on the consent of the people to perform a specific function in a given setting and culture. Traditional justice refers to a system of customs, norms and beliefs that are conventionally exercised by member of a particular group for longer period as a binding law among the community. This system has by far emerged as an alternative way of settling enormous disputes in a given area since 1941. Therefore, the main focus of this paper is to explore a history of traditional justice system and examine major sources of conflict in Mačakel Wäräda from 1941-1974. The paper succinctly discusses the nature of traditional dispute resolution mechanisms and its effort to tranquilize social order in the Wäräda. The researcher consulted available documents found in the national archive and library agency, Däbrä Marqos University Archive center and east Gojjam zone police archive office. Moreover, unstructured interview with different elderly informants living in the study area has been conducted to collect a range of information about the trend of practicing informal justice. Qualitative research design was preferred to present the data. This research proved the traditional justice system has developed the capacity of restoring the broken social bond between the offender, the victim and member of their family thru conciliation, by erasing culturally accepted traditions of taking revenge to show manhood in the community. These ethical rules and customary institutions were primary instruments which would help the community to maintain the balance of justice and execute elder-based judicial verdicts against the aberrant. This oral code of archaic laws were made by the consensus of public gathering, transferred by word of mouth from fathers to sons for generations, operated at managin