A cross-sectional study was conducted from November 2015 to April 2016 at ELFORA export abattoir to determine the prevalence, cyst viability, organ distribution and economic significance of small ruminant cystic echinococcosis. A total of 850 small ruminants (400 sheep and 450 goats), were examined for the presence of cysts by post mortem inspection. In addition, cyst viability test, organ distribution of the cyst and economic loss estimations were conducted. Out of 850 small ruminants, 73 (8.6%) were harboring single or multiple cysts. Significantly higher infection rate (p < 0.05), was observed in sheep (14.2%) than goats (3.6%). Significant variation (p < 0.05) was also observed in different age groups and origin of the animals, but there was no significant variation of cyst distribution among different organs (p> 0.05). Among 104 cysts examined, 44.2% were viable, 19.2% non-viable, 23.1% sterile and 13.5% calcified. In the present study, the total annual economic loss due to carcass rejection caused by cystic echinococcosis at ELFORA export abattoir was estimated to be 941,635.82 ETB (43,333.45USD). In conclusion, this study showed that cystic echinococcosis of small ruminants causes significant economic loss. Further study to determine prevalence of cystic echinococcosis in small ruminants in different agro ecology of the country is recommended.