This study has focused attention on discovering of the social capital of Sebat-bet Gurage people and examining its social and economic implications. The study basically focuses on the Sebat-bet Guraghe area in Guraghe zone, SNNPR, Ethiopia. A descriptive cross-sectional research design and mixed research approach have been used to gather relevant data. In-depth interviews, FGDs and household survey were the main instruments of data collection. A sample of 199 respondents were consulted in a self-administered questionnaire in attempt to collect data related to the social capital basis of Sebat-bet Guraghe people and its socio-economic value to the peoples’ lives. Descriptive methods of data presentation and analysis were utilized in the study. The findings show the existence of strong neighborhood and family ties; strong adherence to cultural institutions, values and norms that support solidarity and mutual help; culturally institutionalized ways of settling/resolving disputes through ‘Yejoka qicha’. In the study, Iqub and Iddir are identified as the most important self-help and mutual support cultural institutions among the people in the study are. The social system among Sebat-bet Guraghe was also found to be compassionate of natural resource preservation and conservation practices since it emphasized The Role of Community Participation and Customary Norms in the process. The role that community elders play in the community is found to have a contribution to maintaining peaceful social order and maintaining conformity of deviating members, particularly the youth. There is also a welcoming and fostering socio-cultural system where strangers could simply get accustomed to. The strong intra-community ties are contributing in many ways to improving the people’s livelihoods business engagements.