Tourism has become agent of change for sustainable local development in different parts of the world. It is supporting the economic growth and is driving force for poverty alleviation program of many developing nations. In Simien Mountains National Park (SMNP) of Ethiopia, tourism is the main motivation to conserve its biodiversity and aesthetic beauty. It has shown better conservational efforts and created environmental awareness amongst the local community though the economic reward tourism brings. The sector is becoming the main means of livelihood in adjacent towns. It is also supporting the livelihood of traditional farmers in and around the park by generating extra income. Different employment opportunities are created for the community, especially to the young. The local community understands the value of their culture and tends to preserve it. Tourism in the park is establishing a long-lasting productive base to allow the local communities and service providers to enjoy a better standard of living. This paper has outlined how tourism is contributing to the sustainable development of the study area.