The objective of this study is to investigate the role of Civics and Ethical Education in building the process of democratization in Ethiopia as well as the challenges facing in implementation process of the discipline and its future prospects. This study is mainly an empirical research focusing on the practical experience of researcher and different secondary sources of data were employed. Methodologically, qualitative research approach was employed to achieve the stated objectives. Accordingly, secondary sources such as journals, books, policy documents and reports were employed for this study. To substantiate the data gathered through secondary sources, primary source of data was also employed like observation of the researcher and key informant interview were used in this study. Based on the data analyzed the finding of the study shows that Civics and Ethical Education has played prominent role in the democratization process of the country. Especially, the discipline has created the demanding society in general and created the youth who knows their rights and demands their human and democratic rights to be protected. The study has shown Civics and Ethical Education has progressive role than previous type of Civics Education existed in the country; but still the gap with regard to creating responsible citizens those who knows their duties (responsibilities) and rights are interdependent. Finally, the study has indicated about challenges facing in implementing the discipline and its future prospects.