Literature reveals that cultural appropriation (CA) involves taking over another group's cultural belongings without consultation, informed consent and compensation, and without proper recognition or respect for that culture which has potential to distort the indigenous cultures. The purpose of this study is to examine the effect of CA on the cultural garment weaving industry in Addis Ababa, Ethiopia. The research adopted mixed methods approach with concurrent convergent research design. Data were gathered from weavers (292), consumers (200) and concerned officials by using questionnaires, KIIs (8), FGDs (3) and observation. Purposive, simple random and availability sampling method were used to determine resourceful interviewees from the weavers' association and government agencies, respondents' from the weaving community and consumers from the population, respectively. The study utilized descriptive and inferential statistics (Pearson correlation and multiple regression) to investigate the quantitative and narrative analysis for qualitative data. Results showed that there is CA which was driven by money making rather than respect; there is no legal and institutional framework that enable preservation, protection and commercialization of the authentic cultural designs, CA negatively impacts income and cultural identity of the owners and distorted the cultural values embedded in these designs. Thus, in order to ensure legal protection of the cultural clothes designs and rights of the weaving community, the society, weavers, weavers' association and the responsible government authorities should work together before such sporadic wisdom and skills get vanished. IMPACT STATEMENT The authors believe that communities residing in different parts of the World have their own unique philosophies and beliefs about space, time and truth. These philosophies and beliefs are reflected in the artifacts such communities use in their day-to-day activities in life and maintained through generations. Cultural diversity is the spice of life, the base for tourism and the cause for interaction among the World population. Therefore, assigning legal protection to cultural intellectual properties (CIPs) benefits both insiders and outsiders of the culture in question. Because, it enables insiders to get recognition for their cultural wisdom and feel valued for what they have. On top of that the compensation outsiders pay enable insiders maintain their livelihoods. It could also encourage communities disclose other beliefs they have and develop artifacts. In that manner, cultures could evolve from within.