The African Union which is headquartered in Ethiopia's capital walked a tight rope throughout the dispute, careful not to criticize its hosts while also facing Somali pressure to intervene

In a major diplomatic breakthrough, Somalia says the obstacles to Ethiopia's participation in the African Union mission were overcome

They have yet to work out the fate of the MoU Ethiopia had signed with Somaliland, leading to a freeze in relations.

Ethiopia and Somalia agreed to work together on a multinational force battling Islamist insurgents, signaling a further reduction of diplomatic tensions between the neighboring countries.

Somalia and Ethiopia are set to restore full diplomatic relations after a visit by Somalia's President Hassan Sheikh Mohamud to Addis Ababa, as efforts intensify to heal a year-long rift that threatened further instability in the Horn of Africa.