The main objective of this study was assessing the practice of indigenous conflict resolution mechanisms named shimglina and its implication in the study area. The research design that the researcher employed was a qualitative approach particularly ethnographic. The respondents selected using purposive sampling technique. Moreover, focus group discussions, observation, document analysis and interview were also employed to collect qualitative data. Specifically, the study identified the common types of conflict; the common causes of conflict; explored the advantage of indigenous conflict resolution mechanism and restoring the social relationship of residents in the study area. Finally the study identified the challenges that indigenous conflict resolution mechanism facing and the weakness that indigenous conflict resolution have. The main causes of land conflicts are poor demarcation of border, inheritance problem and shortage of land and others. The study further explored the advantage and disadvantage of indigenous conflict resolution mechanism to vis-à-vis from formal court. The informants who have used indigenous method of conflict resolution mechanism helped them to save their money and time. Because of using this indigenous conflict resolution mechanism, they have been restoring their relationship and inviting their conflict party and support each other. Furthermore, the study finds that to capacitate the ability of local elders the woreda government support is only confined to providing training and the process of selecting trainee is filed by corrupt practices. Lack of office for local elders also another challenge for the task of these local elders to perform their activity. Moreover, the practice of illegal trade challenges the daily life of the residents in the study area. There are different mechanisms that help to minimize the above problems. To minimize the problem of land and land related problems, the woreda land administration desk should immediately enter in to new demarcation process and reduce the complains . To minimize the problem of illegal trade, the woreda police office and woreda militia desk should work cooperatively with the adjacent woredas of Banja. Key words: Indigenous Conflict Resolution Mechanism, Shimglina ix