This study analyzes the impact of governance performance on economic growth in Ethiopia from 1994 to 2023, using time-series data and the ARDL model. It examines governance performance variables such as government effectiveness, control of corruption, and regulatory quality on gross domestic product (GDP), alongside control variables of FDI and current account balance (CAB). The results indicate that government effectiveness does significantly and negatively affect economic growth in the short term, while control of corruption has apositivemedium-term effect. Regulatory quality shows no significant impact. FDI has a negative short-run impact on GDP, and the current account balance (CAB) significantly influences growth, with a negative relationship. The study suggests strengthening governance institutions, prioritizing anti-corruption measures, improving regulatory quality, and managing FDI and current account imbalances to promote sustainable economic growth in Ethiopia.