The Philippines and Ethiopia established diplomatic relations on 7 February 1977. In 2017, the Philippine Embassy in Cairo, being accredited to Ethiopia, celebrated 40 years of relations through a concert cum reception in Addis Ababa in June 2017.

The two countries have signed two agreements namely an Air Services Agreement signed in October 2014 which paved the way for Ethiopian Airlines to fly to Manila. In October 2016, a Memorandum of Understanding on Bilateral Consultation Mechanism between the Department of Foreign Affairs of the Philippines and the Ministry of Foreign Affairs of Ethiopia was signed.

The Embassy estimates that there are approximately 800 Filipinos working and living in Ethiopia, mostly professionals in the fields of education, industry and services. The Embassy is currently in the process of establishing an honorary consulate in Addis Ababa to service the needs of the Filipinos there.

Top Philippine exports to Ethiopia include millstones and grindstones for milling, grinding or pulping, medicaments consisting of mixed or unmixed products for therapeutic or prophylactic uses, new pneumatic tires, while imports include leather and kidney beans.