Ethiopia has over 70 million cattle, and about 97.4% of the total cattle in the country are local breeds. The remaining are hybrid and exotic breeds, which account for about 2.3% and 0.31%, respectively. The genetic diversity and genomic footprint of Ethiopian cattle populations represent a valuable reservoir of biodiversity with profound implications for sustainable agriculture and food security. The application of molecular information in sustainable cattle breeding improvement presents significant opportunities for Ethiopia's livestock sector. The review explores the genetic diversity, genomic footprint, potential benefits, challenges, and future directions associated with integrating molecular technologies into cattle breeding programs in the country. Molecular tools, such as genomics and marker‐assisted selection, enable the identification and utilization of genetic variation related to desirable traits, including productivity, disease resistance, and adaptation to changing climatic conditions. By utilizing these tools, Ethiopian breeders can accelerate genetic progress, enhance the resilience of cattle populations to climate change, and improve overall productivity. However, several challenges must be addressed to effectively harness the benefits of molecular technologies. These challenges include limited infrastructure and resources for genomic research, inadequate data on cattle genetics and performance, and the need for capacity building among stakeholders involved in breeding programs. By incorporating genetic markers associated with important traits, breeders can identify superior animals at an early age, accelerating genetic progress within the population. Integration of this technology with traditional breeding practices and the identification of selection signatures can lead to more sustainable and effective breeding strategies. In conclusion, the application of molecular information in sustainable cattle breeding improvement offers promising opportunities for Ethiopia's livestock sector. By investing in genomic research, building collaborations, and implementing comprehensive breeding programs, Ethiopia can harness the full potential of molecular technologies to enhance cattle productivity.