Ethiopia witnessed a defining moment in the arena of national politics since the early 1990s. One of the most significant features of the political changes in the post-1991 period has been the recasting of the Ethiopian state structure into an ethnic federation. The government has constitutionally formalized ethnicity as the fundamental criterion of political organisation, inducing many changes in both ethnicity and governance. The political changes that are closely associated with the federalization of the country along ethnic lines pose sets of opportunities and challenges in managing inter-ethnic relations. This book aims at examining the shifting local inter-ethnic relations in Ethiopia, taking the conflicts between the Guji and Gedeo peoples of southern Ethiopia as a case study. It explores the root causes and the federal dispensation capacity in managing those conflicts, with the aim that settlement of the conflicts would contribute to the prevalence of peaceful relations in those contested areas. The author believes that the book would be useful for policy and decision makers’, students of federalism and researchers who study in federalism and conflict management.