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With the advancement of science and technology, digital media is growing and becoming a very crucial aspect of peoples’ lives in both developing and developed countries. Besides citizens, governments are also utilizing digital media, especially social media, for diplomatic purposes, and Ethiopia is no different. The objective of the study is to understand the status of social media platforms being used as a form of digital diplomacy and the extent of the public involvement. Although at its nascent stage, the Ethiopian government has started using digital diplomacy to assure national interest issues and achieve foreign policy goals. However, such efforts haven’t been monitored nationally and the effect of digital diplomacy hasn’t been assessed. In this regard, this study assessed the status and impact of digital diplomacy using social media in Ethiopia. The study has employed qualitative methodology by collecting public opinion using a survey questionnaire and conducting key informant interviews with relevant experts related to the subject matter on the general public opinion. The findings show that the usage of social media has increased in the past years and the use of social media for digital diplomacy purposes has also increased as a result. The participation of the public in digital diplomacy activities is also significant although this is greatly affected by education level, areas of residence, and time spent while using social media. Despite the public’s positive perception of the impact digital diplomacy can have on the country, the public doesn’t think the government is not effectively utilizing the digital diplomacy sphere as per its potential. Gaps identified in this area include the risk of fake news, negative perception towards social media, and challenges to cope-up with the ever-changing digital environment, among others.