This study investigates the effects of exposure to violent conflict on trust among young adults in Ethiopia, using novel individual-level conflict data collected via audio computer-assisted self-interviewing. Overall, we find that greater exposure to violence decreases trust towards individuals living in the same neighbourhood but has no significant effect on generalized trust or trust in individuals from other neighbourhoods. The decline in local neighbourhood trust is pervasive across men and women and across ethnic groups, and is observed for both direct personal victimization and indirect exposure through family, friends, and witnessed events. We also find that low levels of exposure to violence may foster higher local trust, whereas higher levels of exposure lead to substantial declines. Finally, conflict exposure is significantly associated with deteriorations in mental health, lower perceived neighbourhood safety, physical displacement, and greater food insecurity, pointing to potentially plausible channels through which violent conflict may weaken trust within local communities.