Background: Traditional packaging materials are widely used for butter storage in many regions, yet their comparative efficacy against modern alternatives remains under-researched, particularly regarding long-term microbial safety and sensory stability. Aims: This study investigated and compared the impact of traditional Enset-based (Ensete ventricosum) packaging versus plastic packaging on the microbial safety and sensory stability of cow’s milk butter stored at ambient temperatures. Materials and Methods: Butter samples were stored for 12 months, with analyses performed at 4, 8, and 12-month intervals. Microbiological parameters, including Total Bacterial Count (TBC), Coliform count, Staphylococcus spp., and Yeast and Molds, were evaluated alongside sensory attributes (appearance, aroma, and overall acceptance) using a 5-point scale. Results: Storage time significantly impacted microbial loads and sensory quality in both packaging types (P<0.001). TBC, Staphylococcus, and Yeast and Mold counts increased significantly over 12 months. While Coliform counts rose significantly in Enset packaging, they remained stable in plastic. Sensory attributes declined sharply after 8 months in both materials; however, Enset-based packaging provided marginally better protection against appearance degradation compared to plastic by the end of the study. Conclusion: Packaging material significantly influences the microbial and sensory trajectory of butter during long-term ambient storage. Although neither material maintained optimal quality beyond 8 months, Enset-based packaging offered slight sensory advantages. These findings inform the development of sustainable, bio-based packaging solutions to improve the shelf-life of dairy products in ambient conditions.