Microfinance Institutions (MFIs) have emerged as a critical component in supporting women entrepreneurs across various regions, including Ethiopia. The approach employed is a qualitative analysis, focusing on existing literature and theoretical frameworks related to microfinance and gender empowerment. The theoretical framework underscores the need for continued investment and tailored strategies by MFIs to fully realise their potential in fostering economic empowerment among Ethiopian women entrepreneurs. Future research should focus on evaluating the long-term effects of MFI interventions, particularly in terms of sustainability and scalability. Policy makers are encouraged to support the development of more inclusive financial systems that cater specifically to female entrepreneurs.