This paper (26 pages) analyzes the relevance of federalism in Burma, specifically the advantages and disadvantages of implementing ethnic versus territorial types of federalism in the country’s future. Learning from the case studies of Ethiopia’s ethnic-based federalism and Brazil’s territorial federalism, the paper offers insights into the benefits and challenges of decentralization, especially in terms of political representation, service delivery, and managing diversity. The paper finishes by giving recommendations for achieving a federal democratic state in Burma that accommodates diverse groups while fostering economic progress.