This article addresses the underdeveloped state of micro hydropower in Ethiopia and the absence of locally manufactured, low-cost frequency controllers. To overcome this, the research proposes a novel approach using a fuzzy logic controller in conjunction with a PI controller for precise frequency control in micro hydropower plants. The designed fuzzy logic-based system proves to be simple, cost-effective, and responsive, safeguarding the power system components during low flow rates by isolating loads. Ethiopia's abundance of irrigation dams and water resources offers a strategic opportunity for implementing micro hydropower plants with minimal investment and time, particularly on existing dams. This article emphasizes the significance of parameter variations in micro hydropower systems and employs a detailed dynamic model to develop a fuzzy logic controller. Simulation results demonstrate the superiority of the fuzzy controller over the traditional PI controller, exhibiting significantly reduced overshoot (0.9% for a 35% load change) and faster settling times (26.85s). Even under more challenging conditions, the fuzzy controller outperforms the PI controller, showcasing its efficiency across varying operating conditions. The findings underscore the potential of the proposed fuzzy controller in advancing affordable micro hydropower solutions for rural areas in Ethiopia.