The study conducted with proposition that development needs to be participatory including both men and women. Different scholars came up with different explanations by raising the question why gender gap in different sectors The objectives of this paper are to: Analyze some relevant theories of development related to the causes of gender equality considering from different point of view; scrutinize using empirical data on gender participation by education, employment, health and political representation in Ethiopia corresponding to theories development; pinpoint the challenges and obstacles of gender equality in different sector in Ethiopia, assess the legal and policy frameworks of the Ethiopian government on gender. Methodologically, this paper a brief review is made on theories of development that provide justification mainly on the significance of gender equality for development and clarify the determinants of gender equality in different sectors. This easy is written by considering these theories of development as a basis of analysis corresponding to the empirical data on the situation of gender and development; on the challenges in realizing gender equality in Ethiopia. Finally, conclusion and recommendation is made by considering how theories of development with respect to gender and development in Ethiopia underpin with empirical evidences in the country. To supplement the literature interview is conducted and the result of relevant interviewee is narrated as case study in some sections.