This study evaluates the extent to which Ethiopian policies are grounded in rational policy analysis. Employing explanatory analysis methods, the research examines both primary and secondary qualitative data to assess the rigor of policy formulation processes. Findings reveal that the current approach predominantly involves investigating and crafting only one policy option without clear evaluation criteria or the application of sophisticated solution methods. Although consultations with stakeholders are frequent, their effectiveness is limited by issues such as objectives misalignment, timing constraints, and a suboptimal political culture among citizens. Furthermore, the study identifies a significant lack of technical capacity and advisory resources within government institutions, including the central government, parliament, and line ministries. To enhance policy formulation, the study recommends establishing advisory institutions, conducting consultations prior to drafting policies, defining clear policy criteria, and employing advanced solution methods to select the most effective policies