Most countries adopt Bilateral Investment Treaties to drive their economic development and tornget an increase in foreign capital. Yet, investment treaties are traditionally designed towards thernprotection of investors and investment. Usually, a government is held accountable underrninternational arbitrations to make indirect expropriation when it passes a domestic regulation,rnincluding environmental laws that slightly affect host state investors' investments. However, asrnenvironmental concerns have risen to prominence nowadays, the nation state's importance inrnaddressing the issues has been recognized. As a result, countries, especially developed countries,rndesigned their contemporary BITs to integrate environmental protection as a vital matter.rnTherefore, this paper made an in-depth examination of the Implications of Bilateral InvestmentrnTreaties on Environmental Protection in Ethiopia. In doing so, both the law and the practicalrnscenarios have been assessed. Accordingly, the study discovered that, with few exceptions, mostrnBITs to which Ethiopia is a party has significant drawbacks concerning the environmentalrnconcern and portray features of old-generation investment treaties. The notion of sustainablerndevelopment, which is the principal policy basis under the FDRE Constitution and subsidiaryrndomestic laws, has not been incorporated in most BITs. Furthermore, most BITs to whichrnEthiopia is a party did not grant contracting state regulatory power for environmentalrnprotection. So, environmental measures that might be taken may be highly limited, and this will,rnin turn, finally pose a risk of environmental pollution. Therefore, the paper recommended arnremedial measure, including reforming existing BITs through renegotiation and amendment tornexplicitly include environmental protection standards. Furthermore, Ethiopia needs to preparernan all-encompassing and carefully designed model of BIT promptly.