Most vector-borne human diseases worldwide are spread by arthropod disease vectors, including mosquitoes, ticks, tsetse flies, and sandflies, which are greatly impacted by environmental factors. The tsetse-transmitted animal Trypanosomiasis severely hampers animal production and agricultural development in Ethiopia. The southern portion of the Rift Valley, the southwest corner of the nation, the western lowlands and escarpments, and the Blue Nile are the only areas in Ethiopia where tsetse flies are found. These areas are limited to longitudes 33° and 38° E and latitudes 5° and 12° N. The three Trypanosoma species that have the most impact on cattle in Ethiopia are Trypanosoma brucei, Trypanosoma vivax, and Trypanosoma congolense. Particularly in the "tsetse belt," which includes the Omo, Borena, and Metekel zones of the Benishangul Gumuz region, the illness is extensively spread throughout the western and southwest regions of the nation. Ethiopia’s main river systems, including the Abay/Didessa, Omo/Gibe, Baro/Akobo, and southern Rift Valley, are linked to the prevalence of tsetse fly infestations and the Trypanosomiasis they cause. Mixed livestock and crop production is the major farming style in Ethiopia’s highlands and plays a crucial role in agricultural activity. The bioclimatic threshold for tsetse flies in Ethiopia has not been met. Since it has long been typical for the peasantry in general and livestock owners, in particular, to avoid tsetse-infested areas to reduce their chance of contracting Trypanosomiasis, the impact of tsetse-borne Trypanosomiasis on development efforts in rural Ethiopia is becoming increasingly significant. This review examines the economic impact and epidemiology of tsetse-transmitted bovine trypanosomiasis in Ethiopia.