Ethiopian state is one of the oldest empires in the world having a long history of statehood though its territorial boundary has been varied over the centuries of its existence. Until 1990s, Ethiopia was governed by highly centralized governments. Since 1991 Ethiopia shifted its political paradigm to decentralized ethnic based regional arrangements. This long political history of state formation had not been lay the genuine base for human rights values, rule of law, equality and equity of citizen, good governance & democratization. The implementation of the ethno-linguistic federalism had led to the generation of violent conflicts among various ethnic groups and almost in all border areas of regional states. Ethnic conflicts which have been resulting in prolonged instability, loss of life and property, massive internal displacement of minority in particular have emerged as one of the greatest human tragedies and peacebuilding challenges of the country. Currently, the complicationand challenges of ethnic conflicts hit the highest point in Ethiopia than ever before.