The announcement comes after a public outcry both in Ethiopia and abroad about the general crackdown following months of street protests which left scores killed.
About 417 of the pardoned inmates are federal prisoners jailed on charges of terrorism, inciting violence, religious extremism and other related offenses, a statement released by the Attorney General revealed.
The Attorney General has also dropped charges against 329 other suspects.
Of these, 278 suspects are from the Federal, 18 from Amhara and 33 from Tigray regional states of Ethiopia.
The Attorney General recently released 528 suspects, including 115 at federal level, in the first round.
The remaining 413 were from SNNP regional state.
Earlier this week, Oromia and Amhara regional states also pardoned 2,345 and 3,503 suspects respectively.