This study deals with the ethnic identity dynamics and inter-ethnic relation among youths born and grew up in Addis Ababa, with particular emphasis on the current Ethiopian ethnic order.By focusing on the multiple and changing dimensions of ethnic identity and its situational variations, the study provides insight into the subjective understandings of ethnic identity among the study group.In due course the correlation between individual youths in the context of ethnic origin, political outlook and social interaction has been addressed. Thorough analysis and considerable suggestions are forwarded in promoting individual and community cohesion in the city.