Federalism is considered as a win-win model which has non-zero sum orientation. Nevertheless, the way federalism is crafted matters in heightening and lessening of conflicts and claim for secession. The Ethiopian federal formula incorporates an unconditional right to self-determination, including the right to secession. Thus, the practice of federalism and the adoption of a constitutionally guaranteed right of secession came out to have upshots on the neighboring states of the Horn. On the one hand, it has raised the possibility of solving conflicts in a multi-ethnic polity through a federal system while on the other side; it possibly engenders the trend of secessionist movements in Ethiopia which will have effect in accentuating conflicts on the other states of the Horn. Put differently, the effect is explained by the feasibility of domino-effect in the multi-ethnic states of the Horn; the independence of one will result in the rise of expectation of other groups. This in turn would have effect on the political landscape of the sub-region.