Digital transformation is fundamentally altering the tools and practices of Ethiopian journalism, creating both unprecedented opportunities for the democratization of information and serious challenges rooted in the country's historical context. This literature review systematizes and summarizes the body of research devoted to the evolution of Ethiopia's media landscape — from its formation under conditions of strict state control during the Imperial period and the Derg era to the current phase of a hybrid media system. The paper analyzes the key problems facing the industry: the ongoing struggle for press freedom amidst an unfinished political transition, the escalation of information warfare and disinformation, and the search for models of inclusive public discourse in a highly polarized environment. Special attention is paid to the contradictory role of digital platforms, which simultaneously amplify the voices of marginalized groups and act as catalysts for ethno-political tension. The study was conducted as a systematic literature review applying the principles of transparency and reproducibility. Sources were searched in the Google Scholar, JSTOR, and ProQuest databases. Selected peer-reviewed publications and reports were subjected to thematic synthesis to identify key narratives. The scientific novelty of the work lies in the development of an original three-factor conceptual model that explains the dynamics of the Ethiopian media ecosystem through the prism of the interaction between the historical legacy of authoritarianism, the dual nature of digital technologies, and the current socio-political context. In contrast to existing studies focusing on individual aspects, this review offers a holistic view of the transformation of the media institution. The main conclusion is that digital media in Ethiopia are not a linear tool for progress but function as an "amplifier" of existing societal contradictions. Disinformation and algorithmic polarization neutralize the potential of digital platforms as a public sphere. Prospects for further research are related to studying sustainable business models for independent media and the effectiveness of media literacy programs in the face of hybrid information threats.