The study examines the status of ethnic identity, intercultural sensitivity and ethnocentrism, andrnhow it contributes to reducing ethnocentrism among students of private higher educationrninstitutions in Addis Ababa. It was carried out using survey data from 346 randomly sampledrnyoung adults in three private universities in Addis Ababa. Questionnaires adapted from existingrnliteratures were employed as a data collection tools. The adapted measuring scales were thernMulti group Ethnic Identity Measure, the Intercultural Sensitivity Scale, GeneralizedrnEthnocentrism Scale. The collected data were analyzed using both descriptive and inferentialrnstatistical methods. Overall, respondents reported moderate degrees to their ethnic identity andrnhigh levels of intercultural sensitivity and lower level of ethnocentric status. In addition, thernfindings indicated significant mean differences on ethnic identity scores due to sex, age and stayrnin university (batches). Similarly, results obtained reveals that there was a significant meanrndifferences in ethnocentrism scores among males and females; different age levels and differentrnbatches of university students. It was also found out that, there was statistically significantrnpositive correlation between Ethnic identity and ethnocentrism score but not with interculturalrnsensitivity scores. Furthermore, a regression analysis indicated that ethnic identity andrnintercultural sensitivity were found to be significant predictors of ethnocentrism. The resultsrnsuggest that promoting intercultural sensitivity is a possible measure to overcome ethnocentrismrnand reduce conflicts among intergroup interactions. Limitations and suggestions for futurernresearch are provided