The main objective of this research is to examine the role of proverbs to reflect indigenous ethical values in Sidama society. The research was conducted in Chuko Wereda of Sidama zone in southern Ethiopia. Philosophical insight of oral tradition is analyzed from various sources such as proverbs, songs, sayings, and stories to understand the indigenous knowledge of Sidama society. The researcher used qualitative research methods to analyze both primary and secondary data from various sources. The primary data was collected from the various target groups by using focus group discussion, observation, in-depth and unstructured interview in 2017. The secondary data from various sources was also analyzed together with primary sources. The result of analyzing both secondary and primary sources proves that proverbs in indigenous ethical values of the Sidama society have both normative and descriptive ethical roles that include reflecting on deontological, teleological, virtues, descriptive, customary practice, social laws and development ethics of the society. These findings imply that indigenous ethical values have tremendous roles in guiding the day-to-day activities of the Sidama people. The result of this study also indicates that proverbs in Sidama society are reflecting indigenous ethical values that have the potential to enhance good governance through shaping the ethical behaviors of the members of the society.