The study was conducted to Assess the level of political risk in foreign direct investment with arncase study on foreign direct investors located in Addis Ababa and its surrounding area .Thernstudy tried to level/rank the different political risk factors MNCs are facing, Mitigation toolsrnused and Risk management capability of the firms with overview on current unrest challengesrnfaced. Questioners and an interview were conducted to assess the level with structured purposivernsampling .The key finding of the study is that firms on the study have underestimated the extent ofrndamage that political risk can cause to their Investment as and have been affected by the recentrnunrest in the country and while majority of the investors have a risk management departmentrndedicated for risk monitoring ;they were low in implementing of existing political risk mitigationrnand week in evaluating new political risk mitigation strategies and in assigning roles andrnresponsibilities for political risk management .They worry that Civil disturbance ,Transfer andrnconvertibility restriction and adverse regulatory change might affect their future investment . Itrnis obvious that political risk need to be given a prior attention for firms investing with properrnrisk risk monitoring ,Since Foreign direct investment is subject to a far wider range of politicalrnRisks it Should be managed with proper risk management strategy and if not managed byrndifferent mitigation mechanism it could affect the entire investment as can be seen from thernrecent Political Crises that has affected various foreign Investors .Political Risk Mitigation toolsrnthat are available for the investors and those that the investors think are effective for their firmrnat times may be different and Political Risk is not just any business risk that would be left forrnthe management of the investors only , but big support need to come from the host nation andrnEthiopian Investment need to work greatly beyond what is written in the proclamation and postrnrisk damage compensation .