The study was conducted in three main eco-regions, namely Bale Mountains, South-West and Semien Eco-Regions in Ethiopia with the following objectives - to: (i) review the current institutional arrangements in terms of rights and responsibilities, planning system, capacity, and motivation of local communities for the management of environmental resources in Ethiopia in general, and the forest sector in particular and (ii) assess constraints for the successful implementation of policies/legislation, strategies, programs, projects and actions at a landscape level. Focus group discussion and semi-structured questionnaires were used to collect data. Purposive sampling method was employed to select respondents. Environmental resources conservation and management (ERCM) institutions considered in this study were agriculture and natural resources, water, irrigation and electricity, land and environmental protection, local administration, and road authorities. Within the above-mentioned institutions a total of 56 questionnaires were administered and 48 interviews were conducted. The results show that the capacity of the existing institutions is constrained by lack of clear rights and responsibilities, absence of common result framework, absence of common planning system, high staff turnover, absence of spatial planners and failure to respond to the demands of community-based organizations. The institutional arrangements need critical review and analyses in order to design responsible institutions for ERCM at all levels, which includes availing knowledgeable and all-rounded professionals at all levels, with proper incentive mechanisms, who would be able to cope with future challenges emanating from climate change and other social tensions.