Cross-border livestock trade is an important livelihood activity for many pastoral and agropastoralrncommunities in the Horn of Africa. The Objective of the study were to examine thernchallenges and its policy implications of cross border livestock trade along the border of Somalirnregional state of Ethiopia with Somaliland. The main target population of this study includesrnlivestock producers, livestock traders and livestock exporters of the three districts namelyrn(Togwajale, Kebribeyah and Awbare) via Togwjale trade routes in the Somali regional state ofrnEthiopia with Somaliland. These Districts are purposely selected to the evidence that, they arernlocated along the outlet and strong potentials for both domestic and cross border livestockrntrading. The study was relied on both quantitative and qualitative data collected from primaryrnand secondary sources. The primary data for this study was collected with the aid of close-endedrnand open-ended questionnaire. The Secondary data for this study was collected from CustomrnRevenue Authority of Jigjig town, related literatures, annual reports, National livestock tradingrnpolicies, custom office of the outlet, Regional trade bureau, and livestock-marketing departmentrnof the region. In addition, checklist interview was designed to Key-informants. Furthermore, thernchallenges and policy implications of cross border livestock trading was analyzed andrnpresentedin tabulations and graphs. On the other hand, narrative type of analysis was used tornillustrate qualitative information. Finally, recommendations are given based on the findings ofrnthe study.