Commercial arbitration, an alternative method of dispute settl ement, is an integralrnelement In contemporary di spute settlement modalities, both nationally andrninternationally. Commercial arbitration is proved more confidential, flexible and speedyrncompared to the orthodox dispute settlement modality, court liti gation. With due regardrnto these advantages, Ethiopia has also adopted the basics of commercial arbitration in itsrnCivil Code and Civi l Procedure Code. Likewise, there are also some arbitrationrninstitutions that purport to enhance application of commercial arbitration in Ethiopia.rnHowever, commercial arbitration in Ethiopia is still at an embryonic stage. The law isrnscanty and riddled with inconsistencies. The practice too is yet fl edgling due to thernmultitude of factors that inhibit its progress. Lack of awareness is immense, both withinrnthe business community as well as among those who apply the law. Attitudinalrnchallenges are also serious predicament, and more there is the question of arbitrators'rncode of conduct and integrity. Nonetheless, however debilitating the challenges ofrncommercial arbitration in Ethiopia are, it is possible to revive the commercialrnarbitration in Ethiopia if measures are taken to address the existing challenges andrnrevitalize the legal and institutional settings to enhance the progress of commercialrnarbitration in Ethiopia.