Although disposable diapers are superior in performance when compared with their reusable counterparts, a majority of Ethiopian parents use the latter for their babies. The key factors for this choice are limited availability (in rural areas) and high cost. This research proposes to reduce the cost of disposable diapers by making them semi-reusable. The objective was to prepare alternative inside absorbent core from indigenous materials and replace the core from normal disposable diapers after use (especially liquid insult). Such replacement would retain some functionalities of the disposable article while reducing the overall cost to parents. The materials investigated for producing the alternate core were eucalyptus bark and paper (A4 waste paper).The above materials were converted into rough pulp.The pulp was evaluated in terms of diaper performance standards relating to water drop absorbency, sinking time, capillarity, weight difference, speed of absorption and rewet / retention.The results were compared with those obtained for disposable diapers available in the Ethiopian market. It was found that treatment of alternative core material with a hydrophilic softener such as glycerin greatly enhanced the absorbent capacity. The average performance of diapers with the alternate core was comparable to those of original diapers. Then the alternative inside core performs better than prido, molfix, sleepy and pampers. The remaining water volume was less than the commercial diaper. Similarly the weight of inside core and speed of absorption proved that was developed core than a commercial as compare to that is estimated that the cost of using normal disposable diaper is about 80 birr iii pre day which is probable cost of 17 birr pre day case of developed core.It may be concluded from this investigation that the abundant waste paper (from offices and universities in Ethiopia) is an excellent low-cost source to produce alternate absorbent core in baby diapers. It is also possible that, if the community implements the findings of this research, the sanitary hygiene of babies can be improved at a low cost.