In Ethiopia, a diverse array of cereal‐based alcoholic beverages is being prepared and consumed. These traditional fermented drinks are distinct to specific regions and are prepared by locals using locally available raw materials according to cultural traditions. Notable among these are Tella, Areki, Keribo, Borde, and Shamita, renowned for their nutritional benefits and their role in ensuring food security. This paper explores existing literature regarding the production, quality, and safety of traditional cereal‐based alcoholic beverages in Ethiopia. Despite the widespread consumption of these beverages, they have yet to be commercialized, mainly due to their perceived low quality. The uncommercialized processes and products demand more attention, particularly in light of the country's inflationary pressures. Additionally, these traditional fermented beverages significantly enhance health due to the presence of bioactive compounds and their nutritional value. Standardizing and modernizing production methods by integrating scientific knowledge, such as optimizing fermentation practices, is essential to fully capitalize on these traditional beverages. Equipping local producers with this knowledge can facilitate the transition to larger scale production. Furthermore, continued research is essential to maintaining overall quality and safety standards. Therefore, it is crucial to concentrate on enhancing the nutritional value and quality of traditional cereal‐based beverages in the future. By illuminating these aspects, this review aims to enhance understanding of the traditional Ethiopian alcoholic beverage industry and its potential for elevating quality and safety standards. Moreover, the review explores these beverages' cultural significance, consumption patterns, and associated health risks.