In last decade, Ethiopia witnesses so far unseen economic growth while the transformation to democracy more or less failed. Due to the fact that the Horn of Africa belongs to the most unstable regions in Africa, external factors play a significant role in shaping and reshaping of internal politics of each state. In this study, we will focus on an analysis of external factors and their impact on security and politics in Ethiopia. As we argue, it is these factors that have a substantial impact on Ethiopian politics and security.