This report assesses Ethiopia’s preparedness for the EU Deforestation Regulation (EUDR) in the coffee sector. It reviews traceability systems, forest monitoring, legal frameworks and smallholder inclusion. Ethiopia’s coffee is largely forest-friendly, but challenges remain in geolocation data collection, system integration and cooperative capacity. The Market Information Management System (MIMS) offers a strong foundation for traceability, while Participatory Forest Management supports deforestation-free production. Legal land tenure is generally secure, though child labour awareness needs improvement. The EUDR presents an opportunity to modernise Ethiopia’s coffee sector, enhance sustainability and strengthen its position in high-value markets.