A report by BBC News says, the forgotten city thought to date back as far as the 10th century AD has been uncovered by a team of archaeologists in eastern Ethiopia.
Artefacts from Egypt, India and China have been found in the city in the Harlaa region.
The archaeologists also uncovered a 12th Century mosque which is similar to those found in Tanzania and Somaliland.
Archaeologists says this proves historic connections between different Islamic communities in Africa.
However, there was a local myth that the area was occupied by giants because the settlement buildings and walls were constructed with large stone blocks that could not be lifted by ordinary people, BBC report said.
Archaeologists also found jewellery and other artefacts from Madagascar, the Maldives, Yemen and China.
Harlaa was said to have been a thriving markethub for regional trade.