Ethiopia has a rich experience of using traditional education. The major purpose of this study was to assess the educational practices, particularly the pedagogical principles of the traditional Islamic education in Wallo, with a view of its implications for the modern education. The study was designed in the form of qualitative case study to obtain information concerning the current status of the traditional jiqh (Islamic jurisprudence) schools in the far rural area of Wallo. An ethnographic qualitative research was , employed to gather data from the sheikh (teacher) and the students (darasas) in the sample school. Regarding the respondents, besides to the sheikh, twelve present day students were purposely selected for interviews using network (snow ball sampling). To gather the necessary data, interviews (open-ended), observation and focus group •cussion were .the main instruments employed. In the focus group discussion four former students of the harima and .three present day students were involved. They were -t,-e_c_~llc. fu-t.:. also selected with a similar teaching, network sampling. The result obtained from the study showed that, though they have their own limitations, there are some educational practices which are similar to that of the modern educational practices and innovations. Above others, t~ pedagogical principles such as the classroom organization in the multi-grade system, tutorial instruction, assessment technique, cooperative learning activities, and teaching of gifted/talented students were found to be practiced in the traditional school. Based on the findings it was. concluded that, if wide and investigative researches .would made, other relayed educational practices might found in the traditional schools. The findings also suggested that the investigated pedagogical principles in the' traditional school would have positive implications to the modern education system.