Ethiopian horses are multipurpose horses that have socioeconomic significance for smallholder farmers. However, studies regarding their husbandry practices have received little attention. Thus, the current study was conducted to assess the horse husbandry practices in the southwest Ethiopia. Data were collected through semi-structured questionnaires from a total of 196 randomly selected respondents. The general linear model and frequency procedures of the Statistical Analysis System (SAS 9.0) were used to analyze the quantitative and qualitative data, while indices were calculated using Microsoft Excel 2016. Most of the respondents from the Telo district were illiterate, while the percentage of literate farmers was greater in the Gesha and Masha districts. The within-household flock structure and level of importance were dominated by cattle and sheep, followed by horses. The horses were used for transport, draft power, and breeding purposes. In terms of shelters, the horses in the Telo district stayed in shelters, while the horses in the Masha district stayed in forests during both the dry and wet seasons. However, the majority of the horses in the Gesha district were sheltered during the wet season, while they were left to stay in the forest during the dry season. The respondents provided supplementary feed and water to their horses while the water point was located within a kilometer distance. Government and private veterinary shops were the primary sources of veterinary services. Farmers sold their horses at the local market. Castration was performed to minimize aggressiveness. Body size, conformation, and temperament were used as sire selection criteria. An increasing trend in horse population size due to increased farmer interest was observed. In the studied areas, horses were found to be highly important to the livelihood of the farmers. However, horse husbandry practices were led by a considerably greater number of illiterate farmers. Moreover, horse management activities, including the housing of horses, need more attention. Therefore, successive awareness-raising campaigns, including the introduction of formal schooling, are recommended to improve the horse breeding and husbandry practices. Moreover, breeding programs with the aim of genetic improvement and conservation need to be designed to optimize the sustainable utilization of the horses.