Digital cultural heritage preservation in resource-limited environments is a critical challenge faced by many countries, particularly those with diverse and endangered oral traditions such as Ethiopia. The study employs a mixed-methods approach, combining qualitative interviews with community leaders, quantitative surveys among participants, and ethnographic observations in two contrasting regions: urban Addis Ababa and rural Gondar. Data was collected through structured questionnaires, focus group discussions, and direct observation of digital preservation initiatives. A key finding is the significant disparity between urban and rural attitudes towards digital technology adoption for cultural heritage purposes (60% vs. 45%), with a strong preference for traditional oral storytelling methods in rural areas. This study highlights the importance of tailored approaches to digital preservation, emphasising community-led initiatives and localized technological solutions that respect cultural values and preferences. Recommendations include fostering partnerships between local communities, technology providers, and academic institutions to ensure sustainable and culturally relevant digital preservation projects in Ethiopia. Digital Cultural Heritage, Oral Traditions, Resource-Limited Environments, Community Engagement