The Hadiya Zone is named after the Hadiya people, whose homeland covers part of this administrative division.
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The five largest ethnic groups reported in Badawacho were the Hadiya (82.15%), the Kambaata (5.45%), the Alaba (4.71%), the Welayta (3.77%), and the Oromo (2.05%); all other ethnic groups made up 1.87% of the population.
The five largest ethnic groups reported in Fentale were the Oromo (46.54%), the Amhara (17.73%), the Kambaata (12.19%), the Hadiya (12.19%), and the Welayta (1.08%); all other ethnic groups made up 2.58% of the population.