A cross sectional study was conducted to assess the prevalence and economic significance of bovine hydatidosis at Adama municipal abattoir. A total of 500 cattle were examined and 191 (38.2%) of them were found infected. Also, 253 visceral organs were found harboring one or more hydatid cyst. Prevalence of lung and liver cyst accounted for 94.5% and the involvement of other organs as many as 20 cysts were recovered from a single lung. Proportionally 35.7, 34.6, 20.8 and 8.82% of the cysts were calcified, small, medium and large sized, respectively. In addition, sterile and fertile cysts represent 46.2 and 18.1%, respectively. The rate of calcification is higher in liver than lungs, while that of most fertile cysts were recovered from lungs. The annual economic loss due to bovine hydatidosis at Adama abattoir is estimated to be about 171,436.36 Eth Birr (ETB). This information shows the risk of hydatid cyst distribution and economic significance in the study area. Therefore, appropriate control measures should be undertaken which include public awareness education program and a more aggressive effort that should include a reduction of stray dog population.