Abstract This study has examined the role of political elites in the quest for multi- Party democracy in Ethiopia since 1991. Specifically the study has focused on exploring the nature of multi-party democracy and tried to investigate the role of political elites in the establishment and consolidation of multi-party democracy in Ethiopia. In addition to this, the major challenge that undermines the role of political elites in the foundation of multiparty democracy has been explored. To address the objectives of the study, the researcher employed qualitative approach with case study design and used primary data sources which were collected through semi-structured interview. The collected data were discussed and analyzed thematically based on the stated objectives of the study. Based on the finding of the study, the nature of multiparty democracy in Ethiopia is characterized by fragmentation and collapse of parties, weak in their institutionalization process, lack of political experience and weak political culture as country. As a result, political elites lack experience how to practice democratic politics as well as how to create aggregation of interest among different groups and stand as a country. The role of political elites of Ethiopia in consolidation of multiparty democracy are weak in bridging between people and government, creating aggregation of interest, political socialization and mobilizing voters for election. The major challenges that undermines the role of political elites in multiparty democracy includes: fear of persecution, lack of commitment of elites, lack of experience about democracy and its application, lack of aggregation of interest and consensus among political elites and Political repression by government in different ways. Generally, the roles of Ethiopian political elites for the development of multiparty democracy are very weak and have a serious problem in aggregation of interest and consensus on national agenda.