The UNESCO heritage town is facing a grave danger as desperate fighters loyal to Ethiopia's ruler Abiy Ahmed continue indiscriminate shelling of civilian towns and cities in the Amhara region.
The war has become intense in recent weeks as the Fano army grew bigger within six months and posed a major challenge to the Abiy dictatorship. Abiy Ahmed is doing everything to protect his power.
Lalibela was captured by Fano fighters in August, but Abiy forces regained a fragile control of the town's center while Fanos moved to the outskirts.
Fano fighters claimed they moved out of the town after Abiy forces started indiscriminate shelling of the historic town endangering the rock-hewn churches and other UNESCO recognized tourist sites.
War spreading
Heavy fighting has continued in other parts of the Wollo province including areas like Dessie in the south which were calmer in the last six months.
Gojjam continues to be a graveyard for Abiy Ahmed's forces. Tens of thousands of Abiy mercenaries have been killed in DegaDamot (the meat grinder), Feres Bet, Dembecha, Quarit and other localities.
South Gondar and North Shoa are also seeing intense fighting that involved drones and helicopters on the side of Abiy Ahmed's forces.
US and Europe have called for a peaceful resolution of the war, but Abiy Ahmed who had another major war with rebels in Tigray province is desperate to hang on to power at any cost.
Reports suggest Ethiopia's capital Addis Ababa will be the next battleground. Abiy loyalists are claiming to have trained over 500 thousand recruits from the city to defend their powerbase.