Despite decentralization is one of the major policy concerns in Ethiopia, studiesrnregarding its impact on women political empowerment is largely missing. This studyrnassessed the opportunities, challenges and prospects of women political empowermentrnwithin the decentralization ji-amework in Addis Ketema Sub-City. To this end, data wasrngathered using both qualitative and quantitative data collection instruments.rnThe study has found that decentralization is accompanied by institutional opportunitiesrnsuch as local council system that enable women to participate in politics in the sub-city.rnCurrently women cons/it ute on average 39% of local councilors. They also constilutedrn33% of heads of executive ofJices. Decentralization has also resulted in the creation ofrnwomen affairs office.rnNevertheless, women participation and representation in local government institutions isrnfound to be low compared to their percentage share in the total population of the sub-city.rnMore importantly, the over all situation of women political empowerment is found to bernat its nascent stage. This has greatly to do with low level of gender awareness amongstrnthe society, absence of institutionally capable women organizations dedicated tornwomen's concerns, seasonality of political parties mobilization strategy, limitedrnresources and power available to local instilutions. Moreover, there is low level ofrncoordination among concerned stakeholder so as to properly exploit availablernopportunities of women polilical empowerment in the study area. Therefore deepeningrnthe decentralization process and installing affirmative measures such as reserved seatsrnor quota system jor women deemed a key way outs.