Science, technology and innovation [henceforth ‘STI’] policy has long been a key instrument for building national competitiveness and accelerating the socio-economic development of countries. The contribution of STI in improving the quality of people’s lives has been enormous and indispensable. In relation to this, Ethiopia recognized the importance of STI long ago. It has therefore promulgated and revised its science, technology and innovation policy over the years. The STI policy which was issued in 2012 is designed in a way that serves as a key driver for inclusive and sustainable economic development. The main purpose of this study is to enhance understanding of the challenges of STI policy. The author examined the evolution of Ethiopian STI Policy and the challenges of its implementation. To achieve the objectives, empirical data was collected from both primary and secondary sources. Semi-structured interview was used to gather data from the subjects drawn from research council offices of three public universities and the Ministry of Science and Technology. In addition, document and archive reports were systematically reviewed. Clear indications of improvement and progress in the STI related endeavors were observed from the results of the study. However, there are implementation problems as evaluated from dimensions including technology transfer, research, triple helix framework, financing, and international cooperation. Likewise, results indicate that work needs to be done in formulating programs, guidelines and directives that facilitate policy translation into action. The paper ends by suggesting some recommendations for the actors in the STI policy.