<p>The legal and institutional framework governing civil society organizations (CSOs) in Ethiopia is central to shaping their independence, accountability, and democratic engagement. This study employs a qualitative research approach, using primary and secondary sources to compare the Charities and Societies Proclamation (CSP) No. 621/2009 and the Organizations of Civil Societies Proclamation (OCSP) No. 1113/2019. The 2009 CSP emerged in a restrictive political context that imposed severe constraints on CSOs, particularly those engaged in democracy and human rights. Its restrictions on foreign funding and complex registration processes limited civic participation and weakened advocacy efforts. In contrast, the 2019 OCSP marks a significant shift toward liberalization and inclusivity. It removes funding restrictions, simplifies registration, and explicitly allows CSOs to participate in advocacy and rights-based activities regardless of funding source. The law also decentralizes oversight to regional authorities, enhancing local autonomy and coordination. Despite these progressive reforms, implementation challenges remain, including administrative inefficiencies, political mistrust, and limited institutional capacity. Overall, the transition from CSP to OCSP reflects Ethiopia’s broader democratization and alignment with international human rights standards. The reforms underscore the government’s ongoing attempt to balance state oversight with the empowerment of civil society as a key actor in governance and human rights promotion.</p>