The backgrounds of Premier Abiy Ahmed’s new reform policy include the dramatic change of domestic power politics in Ethiopia，the rapid economic development with unfair wealth distribution，the popular discontent，and the political turbulence. The main points of his reforms are as follows：firstly，reconstructing the domestic political order，safeguarding national peace and stability；secondly，redressing the imbalance of national macro economy，ameliorating the business environment so as to attract more foreign investments and improve the productivity and economic competitiveness；thirdly，appealing to the international partners to provide more financial support to his reform endeavors. There are multiple challenges for Abiy’s reform ambitions including the periodic political turmoil，the discords among different ethnic groups，the narrow and extreme nationalism，and the fragility of the economy structure in Ethiopia. Currently，the main financial contributors to Abiy’s political and economic reforms are from the international partners. Hence，the Abiy Reform and political development in Ethiopia need to consider and balance the different concerns and expectations from different domestic and foreign stakeholders.