While Ethiopia has six species of stingless bees, indigenous knowledge of them has not been well documented. In southwestern Ethiopia, we documented the Sheka community’s knowledge of stingless bees. We used the snowball sampling technique to locate 60 experienced honey collectors, conducted semi-structured interviews, and complemented interviews with field observations during honey collection trips with interviewees. Given the scarcity of aboveground nesting stingless bees, honey collectors only collected honey from stingless bees nesting belowground. The average age of the honey collectors was 43 years, but there was much variation in both age and the number of years of experience, indicating that the tradition is handed down between generations. To find the underground nests in the field, honey collectors used several methods, including directly observing nest entrances and worker bee movement, attaching a thread to the worker bee, and listening for the humming sound of the bee’s natural enemy (wasp). Wild nests were always harvested destructively. A single farmer kept ground-nesting stingless bee colonies at his backyard using uniquely tailored wooden hives. Collected honey was used for home consumption, disease treatment, and the generation of income. Our findings illustrate the Sheka community’s deep indigenous knowledge of ground-nesting stingless bees. To facilitate the establishment of stingless bee beekeeping (meliponiculture) in the study area, we may build upon this indigenous knowledge by field research on the biology of stingless bees, taxonomic studies to assess the diversity and identity of ground-nesting stingless bees, and engineering studies to develop beekeeping practices. Together, this may allow for better income for local farmers and avoid the risk of overexploitation of wild stingless bee nests.