This dissertation explores and examines the process and structure of ethnic federal arrangement in Ethiopia. Since the introduction of the ethnic federal project in 1991, there have been wide-ranging claims especially by many Ethiopian intellectuals that the ethnic federal structure would collapse in a short time and the country could immerse into ethnic conflict. Despite these claims, however, the ethnic “federal” arrangement has survived for more than a decade. This short period of survival may not be enough to assure the continuation or sustainability of the system; nevertheless it triggers an interest to understand how it has able to survive and also to engage in finding the possible explanations regarding the pattern and trend of the restructuring process. Thus, this study made a close exploration and examination of the process in order to determine whether ethnic federal formula in Ethiopia is an appropriate model to empower and equalize the diverse and disparate ethnic groups in the context of workable and united Ethiopia.