Locally made shoes in Ethiopia are facing a strong competition from the imported ones. Some researchers have showed that locally made shoes are not chosen by consumers in the local market, which hinders growth of the sector and the economy of a country as a whole. This study is intended to examine the determinants that influence consumers in their decision regarding local shoes purchase in Bahirdar, the study employed quantitative research approach with an explanatory research design and a deductive nature. The population of the study are customers in Bahir Dar city which were sampled with a convenience non probability sampling method. The analysis of responses through multiple linear regression analysis technique demonstrated that Quality, price, ethnocentrism, brand name and reference group have a significant influence on purchase decision towards locally produced shoes. All the five hypotheses have been accepted to the fact that all of the variables have a significant positive relationship with the dependent variable (purchase decision). On this basis, it is recommended that marketing strategies should be designed in consideration of the above factors to make the market share of local shoes grow. Further research is needed to identify other factors that could affect purchase decision apart from (quality, price, ethnocentrism, brand name and reference groups).