Microfinance Institutions (MFIs) have emerged as a significant player in supporting women entrepreneurs in developing countries, including Ethiopia. A qualitative study was conducted through interviews with MFI representatives and women entrepreneurs in Ethiopia. Microfinance Institutions play a crucial role in supporting women entrepreneurs but face challenges such as high interest rates and limited access to formal credit markets. MFIs should enhance their outreach strategies to reach more rural communities and provide financial literacy training to improve borrowers' understanding of loan products.