The issues of indigenous knowledge (IK) inclusion in formal education have gotten academic debates recently. Some scholars argue that western education is responsible for IKs attrition. Others refute that IK enriches modern education. Ethiopia endows with varieties of IKs. Gadaa system is one of the Ethiopians IKs. The country counted more than a century since it adopted modern education. However, it has not included IK in the higher education curriculum. It needs the attention of scholars to explore the importance of IK inclusion in the education curriculum and encountered challenges. This study addresses the knowledge gaps regarding the significance and restraint of IK inclusion in the Ethiopian education curriculum focusing on the Gadaa system. The finding shows that the Gadaa IK system inclusion in curriculum integrates IK to formal education, explores Gadaa democratic governance and peaceful power transition, enriches youths' minds with IKs, and promotes peaceful co-existence. But historical factors and western education domination restrain it. It concludes that IKs like the Gadaa system inclusion to Ethiopian higher education buttresses modern education. It recommends the Bule Hora University Gadaa IK system inclusion in the curriculum needs to expand to other Ethiopian universities.