Biomass fuels account for more than one-half of all energy use in many developing countries and as much as 95% of all energy use in some of the poorest nations. In Ethiopia, it accounts more than 90% of total energy consumption. The dominant utilization of traditional fuels – biomass – coupled with use of technologies of low efficiency is contributing to environmental degradation and prevalence of health problems due to indoor air pollution. Because biomass will continue to be dominant source of energy in developing countries in the foreseeable future, the development of more efficient biomass technologies is vital for alleviating the problems associated with biomass burning. The development of Mirt Injera stove in Ethiopia is one of the results of efforts made to address such problems. The purpose of this study is to assess the potential of this technology in reducing environmental problems – indoor air pollution and natural resource degradation. The two major pollutants quantified in this study are CO and PM. The concentrations of these pollutants in the kitchen were measured using UCB particle monitor and HOBO CO data logger. The results obtained from this study shows that by installing Mirt stove in the kitchen it could be possible to reduce CO concentration by 88.8%, PM by 17.3% when the analysis is made based on the mean 8-hour time frame. The 15-minute maximum has also showed similar trend, 91.5% for CO and 19.3% for PM levels. The most important parameter to make comparisons of these stoves is mean pollutant concentration during baking time. In terms of this parameter, the reductions obtained are 91% and 19.3% for CO and PM respectively. Besides to characterizing the two systems using their pollutant generation, the study tries to highlight the fuel efficiency of Mirt stove in comparison with the open fire system. The result shows that it could achieve specific fuel consumption of 45% as compared to the open fire system. Key words: CO, PM, Mirt stove, Open fire, Fuel efficiency