Abstract:As a creative institutional design, ethnic federalism not only theoretically enriches the forms of federalism but also provides a basic constitutional framework for mitigating inter-ethnic conflicts and achieving political unity in Ethiopia by offering an institutional foundation for modern state-building. However, the constitutional crisis triggered by the two-year civil war and frequent regional conflicts reveals the limited efficacy of ethnic federalism in resolving ethnic tensions. This dilemma stems from the fact that while ethnic federalism achieves national integration in form, it fails to actively address the demands for identity transformation and collective recognition in the process of a multi-ethnic nation-state construction. Therefore, it is imperative to clarify the complex characteristics and inherent institutional defects of Ethiopia's ethnic federalism and actively explore alternative pathways for multi-ethnic state-building. On the basis of the existing constitutional framework, Ethiopia must leverage the normative and integrative value of its Constitution, while aligning with its socio-economic realities. This entails forging an egalitarian civic identity, preserving shared historical and cultural heritage, formulating inclusive and socio-economic policies, and establishing a top-down deliberative democratic mechanisms. Only through such efforts can ethnic-nationalism be eliminated, a political national identity be forged, and the genuine construction of a unified modern multi-ethnic state be realized.