This study was conducted in Gunugo watershed at Wolayitta zone to document indigenous knowledge on agroforestry practices management, and assess the socioeconomic factors affecting tree planting in agroforestry practices. Participatory rural appraisal, and transect walk was used to get qualitative data, whereas, household survey with semi-structured questionnaire was used through systematic sampling method to collect quantitative data. Among different socioeconomic factors, only family size and past participation in agroforestry training were significantly and positively related to tree planting activities. The common management practices on woody species include fertilizer application, pruning, coppicing, prescribed burning, thinning, pollarding, protection from animal damage, mulch application, crop residue application, and watering. After giving due recognition to the indigenous agroforestry management knowledge in the study area, this study has suggested some improvements such as, introduction of new agroforestry practices, and replacement of some of the tree species in order to reduce detrimental interaction of the components. In addition, training is needed to fill the knowledge and skill gap on tree plantation, and management.