The species composition, distribution and diversity of macrophytes in Lake Ziway were determined at the end of dry and wet seasons along nine littoral sites during 2010 using a belt transect method. Some physicochemical parameters were also measured. Fourteen macrophyte species were identified with low species diversity for the lake (H' value of 1.805). The macrophyte species composition of the lake has undergone many changes during the last few decades. Arundo donax, which was never reported earlier, attained the highest relative density (30.7%) and frequency (30.5%) in this study, followed by Echinochloa colona, Potamogeton schweinfurthii, Cyperus articulatus, Typha latifolia and Cyperus papyrus. The average densities of A.donax, C.articulatus, E.colona and Pistia stratiotes were positively correlated with nutrients, whereas the density of the other species had negative correlation with physicochemical variables (CCA). Generally, the present macrophyte composition and abundance indicates healthy ecological condition of the lake. But if nutrient levels continue to increase and water levels continue to decline, we expect further changes in macrophyte composition and especially a shift towards invasive floating species.