The construction industry is one of the most dynamic, uncertain and challenging sectors. Likewise the construction industry in Ethiopia is unstable economic sector and it faces a number of sectorial problems. The industry incorporates a wide range of stakeholders; stakeholder usually has vested interests in the industry. Hence, this study aimed at analyzing the role of key stakeholders in the construction industry of Ethiopia. The thesis was carried out as a qualitative study, the data collected from key stakeholders who are actively involved in the construction industry. Key informant interviews and document review of policy/regulatory documents were the main methods employed. The key stakeholders were at the centre of the analysis. Findings show that key stakeholders participation in the construction industry is fragmented. Public and private institution which actively involved in the construction industry have not shared plan. Partnerships and collaboration platforms are less developed in the industry. At the recommendations, building the capacity of key stakeholders, create conducive environment to make them competitive in the industry, enhance the regulatory framework to strengthen their contributions, mobilization of adequate financial resources and effective communication is found to be very vital for getting the support, commitment and increased involvement of key stakeholders in the Ethiopian construction industry.