Tähulädäre Wäräda is one of the twenty-three Wäräda found in South wollo 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, which is suitable area for human settlement. An attempt to control such natural resources among different social forces in the Wäräda brought 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 conflict resolution system with its institutions, based on the consent of the people to perform a specific function in a given setting and culture. Traditional conflict resolution mechanisms are solving a conflict depending on society’s norms, neighbor relationship or organizational practice .This system has by far emerged as an alternative way of settling enormous disputes in the study area for a long time. Unless conflict is managed properly, it results in political, social and economic destruction of human beings. The cost of conflict depends on the type of conflict resolution system that individuals used to settle their disagreements. The main objective of this study was assessing indigenous conflict resolution mechanisms and practices and their implication for socioeconomic development of the rural people in the study area. Specifically, the study identified the common types and causes of conflict; explored the economic advantage of indigenous conflict resolution system and restoring the social relationship of residents in the study area. It also deals with institutions of traditional conflict resolution, methods of criminal detection. Finally the study identified the challenges that indigenous conflict resolution system facing, dynamics and the weakness that indigenous conflict resolution have. Therefore, the main focus of this paper is to explore a history of traditional conflict resolution mechanisms in Tähulädäre wäräda .The paper discusses the nature of traditional conflict resolution mechanisms and its effort to bring social order in the Wäräda. The researcher consulted available documents found in Dessie museum, in Tähulädäre wäräda information office, police office, culture and tourism office, shaia court and peace and security office of the Wäräda. 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 traditional conflict resolution. Qualitative research design was preferred to present the data. This research proved the traditional conflict resolution system has developed the capacity of restoring the broken social bond between the offender, the victim and member of their family through conciliation, by erasing disputes culturally accepted traditions of taking revenge to show manhood in the community. These ethical rules and xii customary institutions were primary instruments which would help the community to maintain peace,execute elder-based conflict resolving mechanisms