The constitution provided for Ethiopia's first independent judiciary. Traditionally, the Supreme Court and various lower courts were the responsibility of the Ministry of Law and Justice. After Haile Selassie's overthrow, much of the formal structure of the existing judicial structure remained intact. Over the years, regional and district level courts were reformed somewhat. However, the new constitutional provisions had the potential to change Ethiopia's national judicial system significantly.

The constitution stipulated that judicial authority was vested in "one Supreme Court, courts of administrative and autonomous regions, and other courts established by law." Supreme Court judges were elected by the National Shengo; those who served at the regional level were elected by regional shengos (assemblies). In each case, the judges served terms concurrent with that of the shengo that elected them. The Supreme Court and higher courts at the regional level were independent of the Ministry of Law and Justice, but judges could be recalled by the relevant shengo.

The Supreme Court was responsible for administering the national judicial system. The court's powers were expanded to oversee all judicial aspects of lesser courts, not just cases appealed to it. At the request of the prosecutor general or the president of the Supreme Court, the Supreme Court could review any case from another court. Noteworthy is the fact that, in addition to separate civil and criminal sections, the court had a military section. In the late 1980s, it was thought that this development might bring the military justice system, which had been independent, into the normal judicial system. However, it became evident that it would be some time before the Supreme Court could begin to serve this function adequately.

Between 1987 and 1989, the government undertook a restructuring of the Supreme Court with the intent of improving the supervision of judges and of making the administration of justice fairer and more efficient. The Supreme Court Council was responsible for overseeing the court's work relating to the registration and training of judges and lawyers. The Supreme Court Council's first annual meeting was held in August 1988, at which time it passed rules of procedure and rules and regulations for judges. Although the government reported that the courts were becoming more efficient, it admitted that there was much to be done before the heavy case burden of the courts could be relieved.

Chapter 15 of the constitution established the Office of the Prosecutor General, which was responsible for ensuring the uniform application and enforcement of law by all state organs, mass organizations, and other bodies. The prosecutor general was elected by the National Shengo for a five-year term and was responsible for appointing and supervising prosecutors at all levels. In carrying out their responsibilities, these officials were independent of local government offices.

Local tribunals, such as kebele tribunals and peasant association tribunals, were not affected by the 1987 constitution. People's courts were originally established under the jurisdiction of peasant associations and kebeles. All matters relating to land redistribution and expropriation were removed from the jurisdiction of the Ministry of Law and Justice and placed under the jurisdiction of the peasant association tribunals, whose members were elected by association members. In addition, such tribunals had jurisdiction over a number of minor criminal offenses, including intimidation, violation of the privacy of domicile, and infractions of peasant association regulations. The tribunals also had jurisdiction in disputes involving small sums of money and in conflicts between peasant associations, their members, and other associations. Appeals from people's tribunals could be filed with regional courts. Kebele tribunals had powers similar to those of their counterparts in peasant associations.

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Source: U.S. Library of Congress