Children deprived of family environment are the most vulnerable group of society and hencerndemand special attention and protection. The principle of subsidiarity deals with alternativernchildcare options for children deprived of family environment based on the provisions providedrnunder the CRC, the ACRWC, the Hague Convention and the UNGA. The provisions clearly putrninter-country adoption and institutional childcare options to be considered subsidiary to otherrndomestic family based childcare options. Accordingly, this study first, explores the existingrnnational normative frameworks governing the principle of subsidiarity in Ethiopia. It thenrndiscusses the legal and policy gaps based on international child rights instruments ratified byrnthe country. The status of alternative childcare options in Ethiopia has also been discussedrnbased on the national guidelines on alternative childcare options. By using semi-structuredrninterviews and case analysis the thesis further discusses key challenges faced in thernimplementation of subsidiarity principle. The study finds out that, despite promising progressrnmade by the government of Ethiopia in adopting international child rights instruments andrnnational guidelines, the proper implementation of subsidiarity principle remained majorrnchallenge in the country. Besides, the existing normative frameworks on alternative childcarernoptions need legal and policy reforms. Yet, comprehensive legal schemes on alternativernchildcare options must be adopted by the government to better address the problems.rnFurthermore, effective implementations on the hierarchy of alternative childcare optionsrnthrough strong monitoring and evaluation on the performance of different stake holdersrninvolved on childcares are important. In the process of application, the principle of the bestrninterests of the child should be given the paramount consideration.