Ethiopia was relatively isolated from major movements of world politics until the 1895 and 1935 Italian invasions. Since World War II, it has played an active role in world and African affairs. Ethiopia was a charter member of the United Nations and took part in UN operations in Korea in 1951 and the Congo in 1960. Former Emperor Haile Selassie was a founder of the Organization of African Unity (OAU). Addis Ababa is the host capital for the UN Economic Commission for Africa and the OAU.

Although nominally a member of the Non-Aligned Movement, after the 1974 revolution, Ethiopia moved into a close relationship with the Soviet Union and its allies and supported their international policies and positions until the change of government in 1991. Today, Ethiopia has very good relations with the United States and the West, especially in responding to regional instability and, increasingly, through economic involvement.

Ethiopia's relations with Eritrea are tense. Following a brutal 1998-2000 border war in which tens of thousands died, the two countries signed a peace agreement in December 2000. A five-member independent international commission--Eritrean Ethiopia Boundary Commission (EEBC)--issued a decision in April 2002 and follow-up observations in March 2003 delimiting the border between the two countries, but thus far the parties have not agreed to final demarcation. The United Nations Mission in Ethiopia and Eritrea (UNMEE) peacekeeping mission patrols a 25-kilometer-wide Temporary Security Zone (TSZ) between the two countries; a few minor incidents of violence have occurred, all between local villagers and militia or armed opposition groups supported by the other side. Both countries insist they will not instigate fighting, but both also remain prepared for any eventuality. Ethiopia's borders with Sudan and Somalia contributes to tension with the National Islamic Front regime in Sudan and several groups in Somalia. Ethiopia has recently entered into a loose tripartite (nonmilitary) cooperation with Sudan and Yemen aimed at Eritrea, as all three countries have disputes with Eritrea over border and other issues.