Exploring ethical principles of an indigenous people is a crucial issue in promoting good governance. Gada principles are among the indigenous knowledge that the Oromo people produced, accumulated and employed to solve and secure their social and political problems before the establishment of the basic principles (of modern constitution) of the modern government. This paper therefore focused on the Analysis of the Role of the Basic Principles of Oromo Gada in Promoting Good Governance. Some literatures have modern government describe that good governance is the new concept for the Oromo, saying that they are developed by the modern government systems. To explore and identify the above gaps, descriptive type of qualitative research methodology and methods were employed. To this effect, secondary sources were the basic tools and the data were collected through critical text analysis, then carefully analyzed and interpreted. The result of the data manifested that good governance is not the new concepts for the Oromo; that was to say, the Oromo Gada institution is one of the sources of the basic principles of good governance among the people. The research data uncovered that there are fundamental Gada institutional principles in the philosophy of the Oromo that are playing great role in promoting good governance. Among the basic prominent Gada principles: supremacy of law, accountability and responsibility, due process of law, rule of law and fixed office terms are the fundamental once. Briefly, the research data have shown that the Oromo Gada principles have their own indigenous, ingenious and endogenous principles that are maintaining and promoting good governance so as to solve social, economic and political issues of the people. It is a nutshell that exploring, analyzing and interpreting the basic Gada principles of the Oromo helped to promote and create good governance in exercising economic, political and economic rights among the people. So that it is recommendable that employing the important Gada principles of the people is very important in promoting good governance in our country in general and among the Oromo in particular.