Supply chain management is an increasingly important organizational concern, and properrnmanagement of supplier relationships constitutes one essential element of supply chain success.rnFacing increasingly competitive contests, many organizations view supplier performance as anrnimportant contributor to their competitive advantage. The purpose of the research is to examinernthe effect of supplier performance evaluation on supply chain operational performance of ethiorntelecom. The dimensions of supplier performance evaluation are supplier quality performance,rndelivery performance, cost performance, innovation performance and sustainability performancernwhereas the dimensions of supply chain operational performance are supply chain reliability,rnresponsiveness, flexibility, cost and asset management. The study employed inferentialrnquantitative approach to examine the magnitude, direction and significance of the relationshiprnbetween supplier performance dimensions and supply chain operational performance dimensionsrnusing Partial Least Square Structural Equation Modelling (PLS-SEM) to test the proposedrnhypotheses. The primary data was collected using a survey instrument adapted from literature andrnmodified to align with the research objectives which is found to be reliable and valid. 94rnquestionnaires were distributed and 85 valid responses were analyzed using smartpls 3 and SPSSrnversion 26. The result of the study depicts supplier quality, and innovation performance evaluationrnhas a significant effect on the effectiveness dimension of supply chain operational performancern(i.e. supply chain reliability, responsiveness and flexibility) whereas delivery has a significantrnpositive effect on supply chain responsiveness and flexibility but sustainability has an onlyrnsignificant positive effect on supply chain reliability. The study found no significant relationshiprnwith the cost dimension of supplier performance evaluation and supply chain operationalrnperformance dimensions. The study contributes to fill the gap outlined in literature and itsrnmanagerial implication will help ethio telecom to improve its supply chain operationalrnperformance. Based on the findings of the study recommendation is given to work on the significantrnfactors to improve the supply chain operational performance of ethio telecom.