The study intends to identify the existing implementation bottlenecks that hamper the effectiveness of the Ethiopian forest policy and laws in regional states by focusing on the Oromia Regional State. It attempts to address the question, “What are the challenges for the effective implementation of the federal forest policy and law in Ethiopia in general and Oromia Regional State in particular?”. The study followed a qualitative research approach, and the relevant data was collected through in-depth interviews from 11 leaders and experts of the policy, who were purposively selected. Furthermore, relevant documents such as the constitutions, forest policies and laws, and government documents were carefully reviewed. Based on this, the study found that there is the dichotomy between the provision of the constitution regarding the forest policy and lawmaking and the constitutional amendment on one hand and the push for genuine decentralization in the Ethiopian federal state on the other. To elaborate, the constitution is rigid for amendment, and it has given the power of forest policy and lawmaking to the federal government. On the other hand, the quest for genuine decentralization requires these powers to be devolved to the regional states. As the constitution is rigid, this may continue to be the major future challenge of the forest policy and lawmaking of the state. This demonstrates a conflict of interests between the two layers of governments, i.e., the federal and regional (Oromia Regional State) governments. Respecting and practicing the constitution may be the immediate solution to this pressing problem.