Background This study examines the opinions of khat-chewers and local social service providers about the current regulatory framework for khat and their preferred policy option(s). Methods Interviews were conducted with 102 khat-chewing individuals, five habitual groups, and ten social service providers in Jimma, Ethiopia. Results Most of the participants believe that neither laissez-faire nor prohibition policies are appropriate. Reasons for supporting the reform of the current laissez-faire approach include: worries about the escalating use of khat, concerns about the safety of the khat supply, the adverse effects of khat on the city’s aesthetics and hygiene, and negative impacts on economic security. Reasons for opposing the introduction of a policy of prohibition include: prohibition would be counterproductive, and it would undermine the socioeconomic significance of khat. However, the study participants did suggest several regulatory activities, which can be thematized into primary and secondary preventive strategies. Conclusion The preferred regulatory approaches include addressing the structural causes of (problematic) khat use, empowering khat-chewers with awareness about appropriate use, managing the supply of khat, and restricting the age of users and place of use. These regulations are intended to reduce supply, demand and harm, and they depict the khat problem as a complex system.