Indigenous institutions, local‐level organisations based on societal values, are receiving a positive appreciation for their acceptability and sustainability. The purpose of this research is to demonstrate the roles of indigenous institutions in the social and economic lives of people, presenting evidence from the three indigenous institutions of the Awi people in Ethiopia, namely: the "Awi Equestrian Association", "Head of Cow", and "Head of Water". The research is based on an ethnographic approach and qualitative design. Informants were chosen by purposive sampling. Data were collected mainly through interviewing, complemented by focus group discussion, observation, and review of relevant literature, which were thematically analysed together with the primary data. The findings of the study reveal that the Awi Equestrian Association works on charity, social welfare, reconciliation, festivity, and recreation, whereas Head of Cow and Head of Water institutions are engaged in the efficient and equitable management of cattle and irrigation water resources, respectively, plus managing conflicts between people in their respective sectors. Conflict resolution and justice maintenance was found to be the common feature of all the three indigenous institutions. The research concludes that the three indigenous institutions of the Awi have remarkable roles in terms of social support, conflict resolution, resource management, and reinforcing social cohesion. [ABSTRACT FROM AUTHOR]