Open Doors said Ethiopia's northern Tigray State is considering passing a new law that would limit Christian activities within official church compounds.
The law would in effect make it illegal for smaller churches to meet in homes or other buildings. It would also mean that Christians can't evangelise outside of church compounds.
According to Open Doors, local church leaders have raised their concerns about the law with the state government but have not received a response yet.
The charity said a similar law was recently ratified in neighbouring Amhara State which, together with Tigray, is home to most members of the Ethiopian Orthodox Church.
Open Doors lists Ethiopia as 22nd on its watch world watch list.
The organisation states: "Although Ethiopia is a Christian majority country, complex religious and ethnic tensions combined with political and civil unrest mean that pressure on Christians is very high."
