If the Horn of Africa is to fully utilize its resources and potentials, overcome its challenges and thrive, regional integration remains its only option. The thawing of Ethio-Eritrean relations has injected a new sense of urgency and enthusiasm to that eventuality. The years of Eritrea’s isolation ended with Ethiopia and Somalia advocating for the lifting of UN Security Council sanctions and its return to IGAD. Free movement of people and goods and emotional scenes of loved ones meeting after two decades of separation due to the border war- portend the dividends of sustained peaceful relations. Much as the gains are great and deserve to be celebrated, the challenges ahead seem to loom large. The Ethio- Eritrea peace deal remains opaque and both countries, like the other countries in the region, face domestic challenges that directly affect their relations and risk undermining regional integration yet again.