Fodder trees are integral components of agroforestry system in the tropics. Indigenous fodder trees (IFT) are grown in Sidama, Ethiopia, for different purposes. However, their composition, biomass yield and socioeconomic importance are inadequately studied. The objective of this study was to assess species composition, biomass yield and socioeconomic contribution of IFT. Three districts and 12 kebeles were purposively selected, from which 273 households were randomly selected for household survey. Sixty households were randomly selected for inventory within nested quadrats of 20 x 20 m. Twenty eight IFT species belonging to 26 genera and 24 families were identified in three agro ecologies. Species richness in lowland (11.08) was significantly higher than highland (9.6) and midland (7.7) (p < 0.001). Similarly, lowland (1.5) was significantly more diverse than midland (1.2) and highland (0.8) (p < 0.001). Arundinaria alpine, Hygenia abyssinica and Erythrina brucei were dominant IFT, altogether accounted for 72.35% of the total basal area. In midland, Cordial africana, Ficus sur, Dracaena steudneri and Melleitia ferruginea were dominant species, and Acacia albida, Acacia tortolis, Balanites aegyptiaca and Cordia africana were dominant in lowland, altogether accounting for 56.1 and 76.72% of the total basal area, respectively. Biomass yield were significantly different (p < 0.05) among agro ecologies. E. brucei, D. steudneri and C. africana had the highest biomass yield in highland, midland and lowland, respectively. Farmers with large land size, small family size, practicing agroforestry, having awareness and interest about fodder trees had significantly affected the decision to have IFT. In addition to fodder supply, IFT contribute to soil fertility improvement, income source and timber production. Hence, the dominant IFT are important for maintaining biodiversity and contribute as a feed source. Further research is recommended to evaluate the nutritive value of IFT.