Key Account Management (KAM) is asystematic approach to managing and growing a namedrnset of an organization's most important customers to maximize firm value.Little research hasrnbeen done onKAM and firm performance nexus in general and in Ethiopia in particular. Thernperception of both key account customers and Ethiotelecom management members establishedrnthe study setting. The research aimed to empirically examine the effect of Relationship betweenrnKey Account Management Orentation and Firm Performance ofethiotelecom. Data wasrncollected from all the 116 key account customers and 109 ethio telecom management members.rnThe study used both descriptive and inferential statistics to analyze study results.rnTheindependent variablesexplained the dependent variable by 78.4%, and 65.8 % per thernperception of key account customers and Management members, respectively. Thernfindingssignposttop mamagment involvement, customer-centericity, inter -functionalrncoordination, top management commitmentinfluence KAM performanceunder key accountrncustomers model one and ability to customize, inter functional coordination and customerrncentricityinfluence KAM performance under management members model two. The studyrnconcludes key account management affects the performance of ethio telecom