The main purpose of this study is to investigate the challenges and opportunities in the use of radio for development in Ethiopia. Radio is found to be the most preferred mass medium to support development efforts in Ethiopia simply because the majority of Ethiopians are farmers while the country’s level of illiteracy is significantly high. To serve the purpose of the study secondary analysis was employed. The analysis and interpretation of data reveal that ownership of radio receivers in Ethiopia is very low. The other major finding of the study discloses that using radio broadcast mainly as a tool of propaganda rather than as a tool of development is one of the impediments and threatening aspects of the growth of broadcast system in the country. According to the present study the state owned radio broadcasters, both federal and regional, have employed the Open Broadcasting Strategy, which follows “a shot-in-the-dark approach” to radio programming. Though it is a very recent phenomenon, regardless of the problems it has encountered, the expansion of community radio in Ethiopia is very encouraging.