The incident occurred when a truck with a 6-tonne container over-turned in an open market in the western part of Addis Ababa, hitting several traders and vendors at the market.
It took hours for the rescue team to remove bodies under the container.
A majority of the dead bodies were so badly disfigured that they were difficult to identify.
The Addis Ababa traffic bureau said that the truck was out of control before it over-turned at the open market.
The death toll is expected to rise since there were many whose injuries were quite serious.
Ethiopia is one of the countries with the highest traffic accidents with over 2,000 people dying annually on the roads.