Until the turn of the 20th century, only the religious and political elite of the city of Harer in eastern Ethiopia chewed khat. Its consumption has since spread to all regions of Ethiopia and all social groups, irrespective of religious affiliation, gender category, and age bracket, have taken up the habit. In a few decades khat has been transformed from a shrub grown for domestic consumption to the region's predominant cash crop; from a substance chewed on religious and cultural occasions to a visible and pervasive social habit; from a product sold in local markets to the most profitable commodity, whose trade involves millions of farmers, traders, and other service providers in the Horn of Africa and the Arabian Peninsula. The growing importance of khat has engendered a heated national debate in Ethiopia concerning the legal status of the plant. Opponents contend that khat is a health hazard with deleterious socioeconomic consequences and seek a complete ban to curb its "evil influence" on the country's youth and future. Others oppose any policy that ignores khat's micro- and macroeconomic benefits. This article outlines the positions the protagonists in this debate have staked out, critically evaluates their merits, and concludes by urging a public discourse on how to use the prosperity that the khat industry has generated to engender a sustainable economic development.