Female Genital Mutilation is one of the serious violations of human rights. It is one of the commonly practiced harmful traditional practices in Ethiopia. The findings of the study revealed that female circumcision is still a prevalent traditional act in karayyu community. Cultural traditions, psychosocial, religious, hygienic and aesthetic reasons are the rationale for practicing it. The effects of female genital mutilation on health and sexuality were poorly documented in the country. However, immediate and long term health complications of FGM like, infections, Scars, anatomical damage associated with the operations, urinary problem and the problem of infertility, lack of sexual desire, difficulty of lubrication during intercourse and lack of sexual satisfaction were found to be the major impact of FGM on women’s health and sexuality. The study remarked that attitudes of the community are gradually changing towards disapproving the practice, however; they never stopped practicing it. Thus, the study recommends a strong and continuous information, communication, and education programs to bring behavioral changes in the community.