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Economic diplomacy, a new name for an old economic function of diplomacy in a more focused form, is a result of the process of globalization. Today, the globalization of world economy has driven most countries to give priority for economic affairs in foreign policy. The success of economic diplomatic initiatives in foreign policy, however, is contingent on a number of internal and external variables. This book aims to unravel the internal and external challenges faced by Ethiopia in formulating and implementing a viable economic diplomacy. The book raises the question of The feasibility of adopting economic diplomacy and how Ethiopia could overcome the persisting challenges that it encounters. The book finally argues that, despite the challenges, Ethiopia's economic diplomatic initiatives have contributed significantly for the countries development efforts. However, if the government tackles those internal and external Challenges seen as bottlenecks of Ethiopian economic diplomacy in this study, the contribution of economic diplomacy to development efforts of the country will be much more enhanced.