In recent years, Ethiopia has faced significant human rights challenges both within and outside the context of armed conflict. In the case of gross human rights violations, states have several obligations, including the duty to prosecute perpetrators. Ethiopia adopted TJ policy and promised to establish the SPO and a special chamber in light of these needs, thus, the paper is devoted to examining the challenges and prospects of the new SPO and the special chamber. The researcher employed doctrinal and non-doctrinal research approaches to achieve this aim. Relevant data, such as written literature and legal documents, especially the TJ policy, are thoroughly examined. In addition, interviews with TJ expert groups, officials, and experts are conducted. Based on the data, the researcher finds that Ethiopia’s TJ policy provides foundational elements for institutional independence within the SPO, including financial and institutional autonomy. However, critical gaps persist, as the policy lacks crucial guarantees of prosecutorial impartiality, accountability mechanisms, and protections against political interference, which are essential for effective prosecutorial autonomy. Significant prosecutorial challenges remain, particularly in achieving collaboration with existing criminal justice institutions, bridging gaps in prosecutorial expertise, and addressing legal gaps for crimes such as enforced disappearance and crimes against humanity. Moreover, a politically complex landscape poses risks of prosecutorial bias, external pressures, and political interference, which could lead to perceptions of “victor’s justice.” Ethiopia’s alignment with global TJ practices is limited by these challenges. While establishing a special chamber within the judiciary could enhance accountability, risks of executive interference and financial dependence threaten its impartiality. To address these challenges, the paper recommends: legal amendments to explicitly guarantee SPO’s independence and impartiality; the establishment of an oversight body to ensure prosecutorial accountability; and financial and operational autonomy for the special chamber to insulate it from executive interference. Collectively, these reforms are vital to building credible, independent institutions that support accountability, peace building, and justice in post-conflict Ethiopia.