This paper investigates the phonological patterning of segments and tones in compound words in Ewulu. Compounding is a morphological process whereby two or more free morphemes, or words are combined to form compound words. In the study of the Ewulu compounding processes, it was discovered that some segmental processes such as vowel deletion, glide formation and vowel nasalisation occurred. In addition it was observed that a number of tonal processes such as boundary vowel deletion, tone contraction, tone segmentalisation and final high tone downstepping occurred . In its final discussions, this paper, largely inspired by the need to document Nigerian small languages with less than 100,000 native speakers (E`wu`lu` inclusive), recommends the need for indigenous Nigerian small languages to be rigorously studied, documented and developed, if they, on the one hand, must continue to exist, and on the other hand, if they must functionally compete favoruably with Nigerian bigger languages such as Hausa, Yoruba and Igbo in national affairs.