The role of remote sensing data for monitoring different parameters in the study of ecosystems has been increasing. Particularly the development of different indices has played a great role to study the properties of vegetation and vegetation dynamics in large countries. In addition to this, satellite rainfall estimate data has been used to study the pattern of precipitation in areas where station rain-gauge data is not available. The Normalized Difference Vegetation Index (NDVI) and rainfall estimates data from the National Oceanic and Atmospheric Administration (NOAA) satellites were used to investigate the spatio-tempotal pattern of precipitation and the response of vegetation to precipitation in Ethiopia from 1996 to 2008. The patterns were studied in different land cover classes using data from the Global Land Cover Network (GLCN). The spatial patternof NDVI and precipitation showed that vegetation responded directly to precipitation. The seasonal patterns showed that there was between 0 to 3 months lag between precipitationand vegetation. However it was not possible to draw conclusion regarding the annual trendsof precipitation and NDVI because of the nature of the NDVI data, which was produced using the 10 day maximum composite values.