<p>Sustainable ecotourism development seeks to strike a harmonious balance between the needs of tourism, conservation objectives, and social equity. This study investigates stakeholder dynamics and strategic analysis that shape sustainable ecotourism, with a focus on the Wanchi Ecotourism Association (WETA) in Ethiopia. Data were collected through household survey, focus group discussions, key informant interviews, participant observation, and document analysis of relevant institutions that offers a deeper understanding of the regulatory environment and operational dynamics. The quantitative data was analyzed using descriptive statistics and graphical representations, while, qualitative data were analyzed using narratives, context analysis and qualitative descriptions. The study identifies key actors: local government, community leaders, private investors, NGOs and their perceived priorities. Community analysis indicated that the local communities are marginalized due to various factors; yet they have positive attitude towards WETA. The SWOT analysis reveals a number of strengths, weaknesses, opportunities and threats. WETA’s key strengths and opportunities are primarily tied to its strategic location near major urban centers, and its unique biodiversity and cultural heritage. Its main weaknesses and threats stem from political and institutional challenges, including a lack of political stability, weak institutional arrangements, and inadequate ecotourism infrastructure and facilities. The results from the household survey largely corroborated with the findings from the FGDs and KIIs, reflecting a high level of agreement on the identified strengths, weaknesses, opportunities, and threats. It is important to build the capacity of local associations and enhance coordination among stakeholders in order to maximize strengths and opportunities, while minimizing weaknesses and threats.</p>