The article examines how privatization impacts economic growth in Ethiopia. Real GDP growth is used as a measure of economic growth, while privatization proceeds indicate the extent of privatization. The study finds that privatization and foreign direct investment from privatization have a positive and significant effect on economic growth in both the short and long term. However, inflation and government consumption negatively affect economic growth in the long run. Surprisingly, private domestic investment has a negative and insignificant impact on economic growth in the long run. The results suggest that implementing effective privatization policies alongside other structural changes can significantly improve economic growth in Ethiopia.