Population ageing is an emerging challenge in Ethiopia whose demographic features indicate slow but steady changes. As of 2010, about 5.1 percent of the Ethiopian population were 60 years old or over whereas 53.1 percent are younger than 15. If current demographic projections for Ethiopia hold, population ageing would accelerate and 10.3 percent of its population, or about 19.4 million people, will join the club of the elderly by 2050. Objective To analyze the trend and possible consequences of population aging in Ethiopia and explore policy options. Method Use date from Demographic and Health Survey and United Nations population estimates and projections to assess the current as well as likely future demographic dynamics in the country. Results Ethiopia is facing daunting demographic growth and population aging challenges without the commensurate financial and infrastructural resources. It is time to pursue policies that jointly address the problems of unsustainable population growth and rapid population aging.