This study investigated the mediating role of Entrepreneurial Orientation (EO) in thernrelationship between dynamic capability (DC) and performance (P) of Ethiopian Airlines.rnThe research followed cross-sectional explanatory research design, quantitative approach,rnsurvey method and questionnaire was used as data collection instrument. The studyrnemployed exploratory factor analysis (EFA) through principal component analysis (PCA)rnand structural equation modeling (SEM) to validate study results. Middle level managersrn(managers, team leaders and successors), of Ethiopian Airlines headquarter, BolernInternational airport Addis Ababa were the target population. To represent the targetrnpopulation stratified sampling was used and respondents of 222 were selected randomly. 167rnresponses were collected. The finding indicated Entrepreneurial Orientation has arncomplimentary mediation role. Moreover, second order variables maintained a significantrnassociation with dynamic capability. Finally, the independent analysis indicated dynamicrncapability dimensions have a positive and significant relationship with the firm performance.rnThe research concludes the Ethiopian airlines should focus on and strengthen its dynamicrncapability for the better performance in the industry. As a recommendation the researcherrnrecommends managers and other employees of the Ethiopian Airlines needs to exercise andrnincrease its sensing, coordinating and learning capabilities to improve its performance andrncompete in the international market.