Social courts are necessary to resolve disputes at grass root level in advance arising frequency in the community. They are very important to provide sustainable the values of peace full and good neighboring relations among the resident, and to have recognition and protect the existing culture of resolving conflicts through mediation and arbitration. Social courts are important to protect the society from bureaucracy and incurring unnecessary expense, by resolving conflict quickly with the society. The overall objective of the study was, to assess the activities exerted by the social court to resolve inter-personal conflict based on the local custom, tradition, and to examine the role of social courts in resolving conflicts and the challenges that render the day to day activities in the study area and recommend appropriate intervention. The data were collected from three kebeles social court organs through the use of questionnaires’, interview and focus group discussion by using purposive sampling method. Qualitative research approaches were used. The qualitative approach findings show that social courts have resolved a number of disputes over the issue of kebele level and are accepted by the community. Recognizing the authority and function of the community as well as the fact that the community is decisive, the implementation of the decision of the courts makes the veto the role of social court judges. And the main conflict sources in the study area were land related, loan related and family related conflicts and the main challenges of the social court that hinder their activities are narrow office and sometimes they going to tree for reconcile of dispute parties, social courts didn’t have support from government and non-governmental institutions, social court judges didn’t have salary or payment from government and other bodies. The government must be provide the training of social court judges about their proclamation and resolving conflict resolution mechanism system. Key Words: Conflict, Conflict Resolution, Shebel Berenta, Social Court, Proclamation,