has been used as a point of constant interaction between the Semitic peoples from the north .l Wallo has been used as a plat form of series of cultural and historical developments. It and the Cushitic southern and eastern plains .The various ethnic groups who inhabited the .. highlands and the escarpment slopes had been involved in various social and economic interactions. Throughout much of the 19th Century the various ethnic groups particularly of the Afar and the Oromo Md incessantly fought each other on account of economic reasons. In the last .decades of the 19th century with the coming to power of Ras Michael of Wallo, the sporadic fighting seemed to have declined. As government sources and oral accounts revealed, the -- pastoral Afar and agro pastoral Oromo of southeastern Wallo hd been involved in a .- const~ intmdim and conflict until the turn of this century. Apart from their fierce competition and attitudes shared between the two communities had attributed to lessen their social interaction. Despite. the sporadic conflicts, however, the Afar and the Oromo of the escarpment areas and the lowlands in Wallo have also a strong interdependence through trade, marriage and interlµ:rtlrre between the Afar and the Oromo in Southeastern Wallo in the periods from 1942- communities. The different forms of violence particularly in the periods following the exit focusing on the region under consideration. over the scarce resources which can be taken as a cause for conflict, the different social values and attitudes shared between the two communities had attributed to lessen their social interaction. Despite. the sporadic conflicts, however, the Afar and the Oromo of the escarpment areas and the lowlands in Wallo have also a strong interdependence through trade, marriage and , stock alliance. This study therefore tries to in~ the various forms of interactions and nterlµ:rtlrre between the Afar and the Oromo in Southeastern Wallo in the periods from 1942-2000. Attempts have been made to show the social and economic condition -of the two ommunities. The different forms of violence particularly in the periods following the exit of Italians from the country have been discussed in the paper. Finally the study tries to show the new forms of ethnic relation following the introduction of ethnic federalism in Ethiopia focusing on the region under consideration.