Background: Hydatid disease is a zoonotic disease caused by the intermediate stage of dog tapeworm Echinococcus granulosus.Objectives: The study investigated the prevalence of hydatid cysts and the risk factors in cattle slaughtered at the Bishoftu municipal abattoir. It also analyzed the economic loss and community’s awareness of this matter.Animals: 480 cattle brought for slaughtering were included in the study.Methods: A cross‐sectional study was conducted from December 2022 to April 2023 in Bishoftu municipal abattoir involving antemortem examination of cattle and postmortem hydatid cyst investigation, assessment of associated economic loss, and community awareness survey. Animals were selected systematically and cysts were investigated using standard meat inspection procedures.Results: 10.4% of the slaughtered cattle were found positive for hydatid cysts, with no statistically significant association with the considered risk factors. From 85 collected cysts, the lungs accounted for 55.3%, the liver for 29.4%, and the remaining 15.3% were from the spleen, kidney, and heart. About 47.1% of the cysts were fertile and 52.9% were infertile, of which, 37.5% were nonviable. In a survey of 100 individuals, 33.0% were unaware of hydatid disease, and 61.0% were unaware that the disease is zoonotic. Annual economic loss due to the case was estimated at 5,444,564.4 ($97,224.4).Conclusion: This study identified hydatid disease as a significant issue in cattle in Bishoftu, indicating the need for preventative and control measurements. Strategies such as deworming, controlling street dogs, establishing standardized abattoirs, and raising public awareness should be applied to alleviate the problem in Bishoftu and nationwide.