Abstract Manufacturing industry has long been a vital component of emerging countries. Its relevance has been claimed in recent years even if the trends were decreased during the last 20-25 years, those results in premature de-industrialization or non-industrialization. This study explores the nature of spatial distribution and agglomeration of industry in Oromia Special Zone Surrounding Finfinnee, Ethiopia. Firm stage data set and distance-based method were used to answer research questions. Besides, two sets of indications for service and industrialized firms were set respectively to capture the findings in the intra-built-up neighborhood. Perhaps the most salient finding of the study indicates that the spatial pattern of most industries was agglomerated but not connected. Moreover, the index of space-based clustering for manufacturing firm is more than 0.05, but approximately 0.03 for service firm.