In 1958 the Ethiopian navy became an autonomous branch of the armed forces, operating as a coast guard within the territorial waters off Eritrea. Until 1974 a small contingent of retired British naval personnel served as advisers and training supervisors. In 1974 Addis Ababa and Oslo signed an agreement whereby Norway organized and trained a modest maritime force. Starting in 1978, Soviet advisers were attached to the Ethiopian navy.

In early 1991, Ethiopia's 3,500-member navy remained modest and had seen little combat. Its inventory included two frigates, eight missile craft, six torpedo craft, six patrol boats, two amphibious craft, and two support/training craft.

Ethiopia's principal naval bases were at Mitsiwa and Aseb. The base at Aseb included a ship-repair facility. In the past, the navy had cooperated with elements of the Soviet fleet operating in the Red Sea. Soviet naval vessels also made frequent calls at Ethiopian ports to resupply and refit. Moreover, the Soviet Union maintained naval facilities in the Dahlak Islands off the coast of Eritrea. The Soviet Union had an anchorage and stationed a naval infantry detachment there it reportedly also operated intelligence facilities there. After they were expelled from Somalia in 1977 for siding with Ethiopia, Soviet personnel moved a dry dock they had operated at Berbera in Somalia to Aseb and later positioned it off the coast in the Dahlak Islands. At one time, they also had several Il-38 maritime reconnaissance aircraft stationed at Asmera, but by 1989 these aircraft had been moved to Aden because the EPLF had destroyed one of the Soviet aircraft in a daring raid.

Data as of 1991