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

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.

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

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.