Agriculture is the most important economic activity and employment opportunity in Ethiopia. Globally, the country is the largest producer of Khat. The producers and consumers of Khat are increasing combined with earning for the national exports. Despite several controversies have continued on Khat practice, the legal stance of the Ethiopian government and studies on environmental impact are minimal. The review results reveal that agro-climates in different parts of Ethiopia are suitable for Khat production. The plant cultivation has come to common and expanded from southeastern to northwestern part of the country since the 1990s. Various anthropogenic and edaphic factors have contributed for the expansion of Khat production. Khat has substantial economic advantages though it has adverse implications on livestock production, cereal crops and water resource. Khat has undesirable effects on health, social, and environment followed by less empowering the economic capacity of women. Nervous problems, extra marital affairs, sexual abuse, HIV/AIDS, corruption, suicide, addiction, and car accidents are among the detrimental effects of Khat practice on health and social relations. Thus, researchers, policy makers, scholars, and higher learning institutions need to come together to minimize the controversies, alleviate heated debates and disclose public discourses on Khat practice in Ethiopia.