Mr Obama will travel to the capital Addis Ababa in late July to meet with the Ethiopian government and African Union leaders.
The president will be in Kenya before that on a previously announced trip, visiting his father's homeland for the first time as leader.
He has previously visited Ghana, Egypt, Senegal, Tanzania, and South Africa.
The US leader will participate in a global entrepreneurship summit while in Kenya.
In Ethiopia, he will discuss how to "accelerate economic growth, strengthen democratic institutions, and improve security," White House press secretary Josh Earnest told reporters.
Barack Obama will become the first sitting US president to visit Ethiopia, the White House says.