Issues: Ethiopia’s military expenditure is increasing from time to time which detrimentally distracts the actual follow of the economy. The country needs to build a virtuous protection and henceforth, it will do reduction of expenses for growth. Ethiopia is in a prerequisite of to do stability the both. Methods: This paper objective to evaluate the economic determinants of military expenditure in Ethiopia during the period 2011 – 2019. Linear Regression analysis has been applied with military expenditure and export, GDP, gross capital formation, urban population and foreign direct investment. Findings: Ethiopia’s military expenditure has significantly influenced export of Ethiopia which is articulated in the regression analysis and the coefficient is -1.37, R-square is 0.74 and t-statistics is -3.90. GDP increased in the country which is highly significant influence in the increased military expenses and expressed in the regression analysis that coefficient is -5.68, R-square is 0.94 and t-statistics is -11.65. And also, the capital formation of Ethiopia is significantly increased the military expenditure of the country. The urban population of Ethiopia has significantly influenced the military expenses which is clearly elucidated in the regression analysis where coefficient is -9.89, R-square is 0.94 and t-statistics is -10.92 and military expense is significant influence with the FDI of Ethiopia which is clarified as coefficient is -0.40 and t-statistics is -19.60 and there are meager influences of the military expenses by FDI, so R-square is 0.83. Conclusions: Ethiopia’s military expenditure has increased significantly from 2011 to 2019. It has significant relationship between export, GDP, gross capital formation, urban population and foreign direct investment, hence, Ethiopia faces internal and external threads, so it is always surging the outlay for military due to purchase new weapons and import arm equipment. Furthermore, the government policy should focus on GDP, capital formation and FDI to development of the country.