The U.S. consulate in Asmara was first established in 1942. In 1953, the United States signed a mutual defense treaty with Ethiopia. The treaty granted the United States control and expansion of the important British military communications base at Kagnew near Asmara. In the 1960s, as many as 4,000 U.S. military personnel were stationed at Kagnew. In the 1970s, technological advances in the satellite and communications fields were making the communications station at Kagnew increasingly obsolete. In 1974, Kagnew Station drastically reduced its personnel complement. In early 1977, the United States informed the Ethiopian Government that it intended to close Kagnew Station permanently by September 30, 1977. In the meantime, U.S. relations with the Mengistu regime were worsening. In April 1977, Mengistu abrogated the 1953 mutual defense treaty and ordered a reduction of U.S. personnel in Ethiopia, including the closure of Kagnew Communications Center and the consulate in Asmara.

In August 1992, the United States reopened its consulate in Asmara, staffed with one officer. On April 27, 1993, the United States recognized Eritrea as an independent state, and on June 11, diplomatic relations were established, with a chargé d'affaires. The first U.S. Ambassador arrived later that year.

The United States has provided substantial assistance to Eritrea, including food and development. In FY 2003, the United States provided $71.6 million in humanitarian aid to Eritrea, including $65 million in food assistance and $3.36 million in refugee support. The U.S. also provided another $10.16 million in development assistance, with the total aid package worth $90 million.

U.S. interests in Eritrea include consolidating the peace with Ethiopia, encouraging progress toward establishing a democratic political culture, supporting Eritrean efforts to become constructively involved in solving regional problems, assisting Eritrea in dealing with its humanitarian and development needs, and promoting economic reform.

The address of the U.S. Embassy in Eritrea is 28 Franklin D. Roosevelt Street, P.O. Box 211, Asmara (tel. 291-1-120-004; fax: 291-1-127-584).