Celebrity endorsement is a widely used tactic in marketing and a useful way of Pushing a product in crowded markets, much research has been done on the selection and effect of celebrity endorsement. The study was done with the aim of assessing the effect of celebrity endorsement on consumer buying behavior in case of fast moving consumer goods in Addis Ababa. This study identified key factors that determine the effectiveness of the celebrity endorsements in affecting purchasing decision in advertisements. It adopts a quantitative approach, with a structured questionnaire as the main tool. A survey of 384 samples was conducted; the data have been collected from fast moving consumer goods consumers in Addis Ababa followed by convenience sampling. Further the data were analyzed using a descriptive statistic so as to analyze the demographic data of the respondents and Pearsonâ€™s bivariate correlation analysis, and multiple regression were used to test the hypothesis using SPSS software version 23. Results indicated that all the observed factors affect purchasing decision except one and that is meaning transfer. These are trustworthiness, attractiveness, expertise and celebrity/product matchup. Also there exists linear and positive significant and strong relationship was found between independent variables and dependent variable. This informs that the universal positive influence of celebrity endorsement on consumer buying decision holds true. As a result, the paper concluded that celebrity endorsement is an important communication technique that affects purchasing decision of consumers purchasing FMCgs. In choosing celebrities companies should choose celebrities having endorser-product match up, celebrities that are attractive, those that are trustworthy, and celebrities that are believed to be credible in order to elevate the firm's distinctive selling proposition to new heights..