"This paper looks at the formation of ethnicity and ethnic conflict in the Horn of Africa with particular attention to the conflict between Ethiopia and Eritrea. Firstly, conflict in the Horn of Africa at large is mapped out. Ethnic and political groups within Ethiopia and Eritrea are looked at respectively so as to analyse the outbreak of war in the two countries. The extent of external role players' involvement in this conflict is examined. Finally the essay also attempts to assess the social and economic consequences of the war between Ethiopia and Eritrea."