The study investigated the Determinant factors on financial performance of micrornfinancial institution in Ethiopia. Basically, micro financial institution financial performancerncan be determined by both internal and external factors. The study measure the determinantrnfactors in what extent affect the financial performance from the period of have been studied.rnThe study used secondary panel data for the year 2009-2019 from audited annual financialrnstatements of MFIs included in the sample, annual report of National Bank of Ethiopia tornassess the effect of determinant factors on MFIs performance. Purposive sampling was used tornselect ten MFIs out of more than 35 MFIs on the basis of having full set of data on the range ofrnyear from 2009-2019. Besides sampling method, the data analysis tools that have been used inrnthis research work were descriptive statistics as well as econometric model. Fixed effect Modelrnhave been applied for the model with dependent variables ROA and Six internal and externalrnto MFIs Variables has used as independent variables such as Capital adequacy ratiorn(CAR),Gearing Rate(GR),Operational efficiency (OE), Size or Total asset (SIZE),Savingrnmobilization(SM) and Real gross domestic product(RGDP).The major finding of the studyrnshows that gearing ratio and saving mobilization have significant effect on ROA with positivernrelationship. Operational efficiency has negative significant relationship with ROA. Howeverrnboth size or total asset and real gross domestic product have positive insignificant relationshiprnwith ROA. Finally capital adequacy ratio has negative insignificant effect on ROA.