The objectives of this review were to synthesize the community structure of phytoplankton and the role of atelomix in the phytoplankton dynamics in Ethiopian highland lakes. Changes in a lake's physical structure, light dynamics, and availability of nutrients are closely associated with phytoplankton ecology, and phytoplankton assemblages provide insight into phytoplankton responses to these environmental changes. Based on the available information, a total of 173 species of phytoplankton are grouped under seven classes, Chlorophyceae (80 taxa), Bacillariophyceae (55 taxa), Cyanophyceae (24 taxa), Dinophyceae (6 taxa), Eugleonophyceae (6 taxa), Xanthophyceae (1 taxon), and Cryptophyceae (1 taxon) were recorded in five different tropical Ethiopian highland lakes. Chlorophyceae and Bacillariophyceae dominated in terms of species composition. Partial atelomixis, seasonality, and low nutrient concentrations seem to be the main drivers in structuring phytoplankton composition and abundances in Ethiopian highland lakes, characterized by a high diversity of atelomix-dependent benthic diatoms and desmids. Thus, this review will help understand the role of atelomix and nutrient availability in the phytoplankton composition and biomass of tropical highland lakes of Ethiopia.