Globally, until recently, the Electricity Consumption - Economic Growth debate hadrnproduced conflicting and interesting outcomes. In order to provide support and usefulrninformation for policy advisers and to fill the knowledge gap in the area, this thesisrninvestigated the short-run and long-run causal relationships between Economic Growthrnand Electricity Consumption as target variables in Ethiopia during the period 1988â€“2017.rnThe research also included additional variables such as FDI, Government Expenditurernand Net Export and will be the first in its kind on this topic while studied as a single countryrnstudy in the Ethiopian case. This thesis employed Autoregressive Distributed Lag (ARDL)rnand Error Correction Model (ECM), as an econometric approach, with the help ofrnstatistical software EViews. The results have shown that all variables are I(0) and I(1);rnthere is co-integration relation between the variables; but there is no causal relationshiprnbetween electricity consumption and economic growth. Moreover, the results of thernGranger Causality test confirm the neutrality hypothesis. Despite its enormousrnhydroelectric potential, Ethiopia does not yet meet its energy requirements in the powerrnsector and Electricity Consumption accounts for only 2% of total Energy Consumption.rnThe results should, therefore, be interpreted with care as Electricity is at the heart ofrndevelopment. Overall, the results of this study show that the long-run equilibriumrnrelationship between electricity consumption and economic growth in Ethiopia needsrnfurther attention in future research.rnKeywords: Economic Growth, Electricity Consumption, ARDL and ECM.