Unique among African countries, the ancient Ethiopian monarchy maintained its freedom from colonial rule with the exception of a short-lived Italian occupation from 1936-41. In 1974, a military junta, the Derg, deposed Emperor Haile SELASSIE (who had ruled since 1930) and established a socialist state. Torn by bloody coups, uprisings, wide-scale drought, and massive refugee problems, the regime was finally toppled in 1991 by a coalition of rebel forces, the Ethiopian People's Revolutionary Democratic Front. A constitution was adopted in 1994, and Ethiopia's first multiparty elections were held in 1995.

A border war with Eritrea in the late 1990s ended with a peace treaty in December 2000. In November 2007, the Eritrea-Ethiopia Border Commission (EEBC) issued specific coordinates as virtually demarcating the border and pronounced its work finished. Alleging that the EEBC acted beyond its mandate in issuing the coordinates, Ethiopia did not accept them and maintained troops in previously contested areas pronounced by the EEBC as belonging to Eritrea. This intransigence resulted in years of heightened tension between the two countries. In August 2012, longtime leader Prime Minister MELES Zenawi died in office and was replaced by his Deputy Prime Minister HAILEMARIAM Desalegn, marking the first peaceful transition of power in decades. Following a wave of popular dissent and anti-government protest that began in 2015, HAILEMARIAM resigned in February 2018 and ABIY Ahmed Ali took office in April 2018 as Ethiopia's first ethnic Oromo prime minister. In June 2018, ABIY announced Ethiopia would accept the border ruling of 2000, prompting rapprochement between Ethiopia and Eritrea that was marked with a peace agreement in July 2018 and a reopening of the border in September 2018.