This paper examines the opportunity and security implication of the advent of competing foreign powers in the geostrategic Horn of Africa for Ethiopia. Accordingly, the paper argues that since the advent of competing foreign powers in Horn of Africa is both an opportunity and security risk for Ethiopia, there is a need for a rational and assertive foreign policy aimed at utilizing the opportunity, minimizing the risk and countering neo-colonialism and -Clientelism‖. Methodologically, the study employed qualitative research methodology. Accordingly, the study used secondary source of data; collected from books, published journal articles, published and unpublished theses and dissertation, governmental and non-governmental organization reports and remarks, magazines and other internet sources. To substantiate the data, the paper also used primary data collected through key informant interviews. Given the data gathered are qualitative, the study employed qualitative data analysis techniques. The finding of the study shows that Horn of Africa has become -an athletic field‖ of foreign powers. It can be argued that the region has become -a military garrison‖: US, France, Germany, Italy, Japan, China and Saudi Arabia have already established their military base at Djibouti. Thus, the militarization of the Horn is both an opportunity as well as a risk for Ethiopia, a nucleus and landlocked country of the sub-region. It is an opportunity in areas of military, regional stability, accelerating factor of regional integration and economic worth. However, these opportunities are largely determined by the Ethiopia's diplomatic utmost effort and policy reorientation. Despite these opportunities, the rise of foreign powers in the Horn of Africa has a security risk: national security, economic, political and military. Therefore, Ethiopia needs a rational and assertive foreign policy to utilize the opportunities and at times to minimize the security risk. First, in domestic policy setting constitutionalism is highly needed which is imperative. Second, regionally, Ethiopia must stabilize and normalize its relation with Eritrea. Moreover, Ethiopia must strength its relation with all of its neighbors. Third, Ethiopia must maintain a good relation with foreign powers that already established a military base in Djibouti. In this regard, over-reliance on some foreign powers and neglecting others, becoming an instrument of foreign powers must be avoided. Rather Ethiopia must use a rational policy and at times must follow the foreign policy of Emperor Menelik -playing one foreign power over the other‖. Moreover, emphasis also should be given to the importance of collective security. Finally, Ethiopia and the region must work towards countering neo-colonialism and patron-client relations. Falling to adopt countering strategy may be quoted as -neo-colonialism and Clientelism‖ by invitation.