Protected area management has shifted towards holistic, ecosystem-based approaches that consider human-environment interactions. This includes the concept of benefit-sharing, which remains underexplored in the context of Bale Mountains National Park (BMNP), Ethiopia. Using the BMNP as a case study, the research (i) assessed existing benefit-sharing mechanisms, (ii) investigated community acceptance of existing benefit-sharing mechanisms, (iii) assessed the equity and fairness of benefit-sharing in BMNP, (iv) investigated the decision-making process in benefit-sharing mechanisms, and (v) assessed the challenges of operationalizing the benefit-sharing mechanisms. A mixed-methods approach involving household surveys, key informant interviews, and focus group discussions was employed, with respondents selected using multistage sampling. The findings suggest that, while BMNP has the potential to employ various benefit-sharing mechanisms, benefits are mainly derived from ecotourism and non-timber forest products. The existing benefit-sharing structure operates mainly through community user groups, but the benefits, delivered in the form of direct payments, community development projects, and capacity-building initiatives, are very limited. This reflects a weak and poorly coordinated benefit-sharing structure within the park. The results also revealed that community acceptance of existing benefit-sharing mechanisms varied significantly across districts bordering the park, which is attributed to unequal access to benefits across districts, and socioeconomic disparities, particularly the income levels of households. The study showed that 52.3% of the respondents expressed dissatisfaction with existing benefit-sharing mechanisms due to the lack of transparency and community involvement in benefit-sharing decisions. At the same time, decision-making processes were also reported to be male-dominated. The existing benefit-sharing mechanisms are fundamentally constrained by the lack of transparency, trust and a clear approach, further compounded by limited skilled manpower and financial resources, making them unsatisfactory in their current form. We suggest that the BMNP further expand benefit-sharing through community-based ecotourism, participatory forest management, and controlled hunting zones. In addition, a well-structured benefit-sharing mechanism is needed to create a win-win situation, ensuring both ecological integrity and economic benefits. Strong political will and commitment are essential to establishing a tourism revenue-sharing policy that ensures that local communities receive their fair share, fostering ownership and support for the park.