Ethiopia and Djibouti established an amicable relations since very long time ago, especially on economic areas. Port and railway were the main connecting factors for the two states in exercising economic relations. Nowadays, however, different new developments like electricity export, infrastructural linkages and social as well as political relations are further intensifying the two countries’ relations. At the top of that, the prevailing strong economic interdependence spilled over to peace and security cooperation. Accordingly, they are jointly working on the peace and security of the two countries and the Horn of Africa at large.