This paper examines the factors that affect the internationalization strategies of Ethiopianrnleather product manufacturing firms. International trade, especially export is very important forrnthe growth of any country. But due to various reasons, the export item that Ethiopia is endowedrnwith is underserved. Therefore, this paper tries to investigate the factor that contributed to thernpoor performance of the leather sector. To analyze the challenging factors that led to the poorrnperformance of the leather sector, the researcher used internal and external environmentalrnfactors. An internationalization strategy in this paper is represented by the entry modes, marketrnselection, and target customers. Primary data collection method; questionnaire is used to collectrninformation from the selected leather manufacturing firm located in Addis Ababa and thernsurrounding special zone of Oromia region. The data is then analyzed using descriptive,rncorrelation, and regression analysis through SPSS 20. The findings derived from the study thenrnindicate that internal environment factors such as human resource factors, physical resourcernfactors, and organizational factors affect the international strategies of leather firms. Internalrnfactors such as economic forces, government, legal and political forces, competitive forces, andrntechnological forces affect internationalization strategies in addition to the internal factorsrnmentioned earlier. After the result is obtained, the researcher has forwarded policyrnrecommendations that can potentially improve Ethiopiaâ€™s leather sector performance. Therefore,rnto improve the leather sector's performance in the international market, anyone involved shouldrnexert their maximum effort. That means the manufacturing firms by their initiative shouldrnidentify the challenges and the improvement areas needed. After identifying the problems thernfirm should take correcting measurements. From the government side, starting from policyrncreation that supports leather producing firms to creating conducive environment is needed. Forrninstance, formulating and implementing a strong trade policy towards imported leather itemsrnfrom abroad, preparing exhibitions that promote leather products at the international level,rnworking in changing the perceived low value of leather products in various internationalrnmarkets, etc is expected from the government.