This book addresses the demographic transition potential in Ethiopia and the possibility of capturing the demographic dividend, and suggests mechanisms to facilitate this possible opportunity. It is based on the “Spectrum” Projection Model covering the period from 1994 to 2050. The age structure of the Ethiopian population has remained youthful for along time now, but with recent incipient fertility decline expected to be expediting, Ethiopia’s demographic profile will see considerable shift in the next four decades. Education and employment indicators witness that despite some improvements in past years, there still are huge unemployment rate and low secondary school enrollment as well as wide gender disparity both in secondary education and formal employment. Projections under different scenarios reveal that fertility plays important role to reap the demographic dividend. Thus it will determine Ethiopia’s future development course including its prospect of joining Middle Income Countries, urging the Government of Ethiopia to reconsider its long standing negligence to population issues in the country. The book is meant for policy makers, researchers and experts in this area.