This research work presents an analysis of the Ethiopian legal Famework thatrngoverns the formation and operation of Civil Society Organizations (CSOs). The objective ofrnthe research work has been to assess the adequacy of the existing legal regime and practicesrnthat govern the formation and operation ofCSOs. The central argument of the research workrnis a positive assertion that the existing legal framework and practices for the civil societyrnsector is inadequate which in turn affects the contribution of the sector towards therndevelopment process of the country. The paper begins by selling out the role of CSOs in the development process and thernimportance of a legal framework that governs the sector. This discussion shows how CSOsrnhave increasingly came to be accepted as one of the key actors in the development processrnboth at a global and the national level. After having established the role of CSOs in therndevelopment process, the paper examines the legal framework that governs this sector.rnExamination of the legal framework for the civil society sector begins by a literature reviewrnon the over all role of law in the development process. The discussion on this subjectrnidentifies the crucial role of law in the development process at large and the social, politicalrnand economic rationales on why a country should want to have a legal framework thatrngoverns the civil society sector. The paper continues to provide a survey of the existing laws and regulations thatrngovern the sector in Ethiopia and tries to identify major practical issues of the legalrnframework, which have constrained the formation and operation of CSOs. The research workrnhas identified a set of practical problems that the sector is facing both in formation andrnoperation. The issues are identified on the basis of a series of consultation with practitionersrnof the sector and other well-placed observers. The analysis on these issues proves the central argument that the existing legalrnframework for CSOs is inadequate and hence the need for adopting a comprehensive legalrnregime that enables the formation and operation of CSOs. Such a new comprehensivernlegislation responsive to the needs of the sector will help to maximize the contribution of thernsector towards the development effort of the country.