From its nature, federal system not only stands for the distribution of powers between federal and state governments, but also requests relations between the two in order to ensure coordination and effective achievements of powers and responsibility divided. Ethiopian Federal-States intergovernmental relations are dominated by the federal government and its executive institution because of ruling political party, existing political culture and absence of practical institution that manage and guide the relationships between the two orders of government which has influence on constitutionally given states autonomy. This article appraise the impact of federal-states intergovernmental relations on latter's autonomy based on data collected through interview from diversified groups of informants, were necessary and relating with existing conceptual frameworks. Using all these mechanisms, the result shows that, in Ethiopia, federal-states Intergovernmental relations (IGR) influences the constitutionally given state autonomy and the federal government and its executive institutions dominates the process of Ethiopian federal-state intergovernmental relations through the hands of TPLF/EPRDF ruling political party. Frankly speaking, unless the principles enshrined in the constitution changed to practice this, political crisis will disintegrate the future of Ethiopia. It is not federalism that brought this rather the system and failure of its practice as it demands full commitment.