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Traditional knowledge has remained to be suitable research ground for a number of researchers both in and out of Ethiopia. In the case of Ethiopia, several have conducted their researches with a focus on the traditional production practices of different groups of societies. Despite this fact, no one has been in a position to study the traditional production practice of the peasants of Tigray side by side with the challenges they encounter and the local responses they happened to develop through time. In this paper, the traditional mechanisms of production in agriculture and craft technology are discussed together with the time tested local mechanisms of coping with challenges that are faced amid of production. The paper is organized in such a way that it will be helpful for both Economic and Development Anthropologists as well as for any reader in the field of social sciences.