Purpose: This paper aims to analyze and illustrate achievements and challenges of Ethiopian higher education, both at the system level and at the level of new public universities. Design/methodology/approach: Achievements and challenges at the system level are based on literature review and secondary data. Illustrative case studies are based on university data and interviews with university representatives. Findings: The Ethiopian higher education system has increased its enrollments substantially. The construction of 13 new universities that started enrolling students around 2007 contributed greatly to this achievement. Challenges accompanying this growth lie in funding, quality and quantity of staffing, teaching practices, research and community service, quality assurance and gender balance. Originality/value: The present study contributes to existing literature by describing case studies illustrating challenges and achievements in new public universities in Ethiopian higher education.