This Dissertation analyses the constitutional and developmental dilemma of vertical power delegation over land in Ethiopia. It particularly examines the respective power of the Federal Government and regional states over land. It also analyses the constitutional status of vertical power delegation together with the institutional responses on upward flow of power over land. Cemented on the existence of several instances of power centralization over land, the Dissertation investigates the impact of the government‘s development orientation to that effect. It also presents relevant lessons that Ethiopia can consider by reviewing the experiences of selected federal states about vertical delegation of power. To that end, data were collected from relevant federal and regional laws, interviews, books, journals, conference and working papers, and newspapers. It is contended that the constitutional power allocation scheme over land does not clearly state the extent of federal legislative power over land and regional states‘ power to administer thereof. Moreover, there are indications whereby the Federal Government has centralized the power of land administration in opposition to the county‘s federal system and the constitutional order. Despite this, the relevant federal institutions that are mandated to defend the FDRE Constitution and the federal order have failed to resist the upward flow of power over land. The government has been justifying power centralization to its approach of development. Democratic centralism has been taken as an implicit justification for the continued power centralization. There is, thus, a quandary between the constitutionality of such power centralization effort and the government‘s approach of development. Following a thorough investigation of the issue, the study recommends that federal laws that empower the Federal Government to undertake matters of land administration shall be revised and the mandate shall be given back to regional states. It further calls for a constitutional amendment to elucidate the relative power of the federal and state governments over land. The federation shall also start to adequately decentralize regional power to realize and maintain regional autonomy. It is further counselled to take the lessons from the experiences of selected federations with a pinch of salt.