Understanding farmers’ perception on cover changes of tree/shrub species diversity and management systems through their indigenous knowledge is vital to integrate their input with the scientific studies. However, they have practiced different Agroforestry systems, it well not improved and steady. Owning to this general, the study was conducted at Bahir Dar Zuriya Woreda (district), at two Kebele administrations (KA)s and four villages, from each KA two villages with the objective to increase our understanding on changes of woody species diversity and management systems. Farmers at the study site have developed experiences in identifying their tree/shrub species preferences for different purposes and manage them beginning from own nurseries. Therefore, farmers’ indigenous knowledge should be acknowledged and kept in touch which will be invaluable in developing plans for researchers, development agents and any other organizations.