Queen Sheba was founded in 1942(1934 E.C), exactly a year after the defeat of colonial Italy. The foundation for what subsequently would be four classrooms was laid adjacent to where the current school stands. When class started Haleka Teweldemedhin Gebru moved his pupils, 17 in all, from Mission school at Grat MaElem where he had been teaching on his own for some years. In that day and age, there were tremendous religious, cultural, and social constraints, where even sending one’s kid to modern education was considered as converting one's religion and abandoning local culture. Hence, overcoming these hurdles and registering once kid at a school required courage and determination. In addition there was a controversy as to what use the 15,000 sq meter area which though ideal for a school was also coveted by the Ministry of Finance and other government officials of the time. However the controversy was settled when Price Asfawessen visited Adua and declared that the area be used for the school.

After overcoming the initial controversy and social constraints, the director Bilata Gebru T/Haimanot expanded the school by hiring teachers and other employees from the local population and from other areas and through constant discussion and permission with the then Director of Ministry of Education, Ato Gebreab Biadglign.