SummaryFish has historically played an important role in food security in many countries and contributes to do so in globally, providing 15-20 percent of animal protein intake. Fishery has been practiced in different parts of the world. At present, the country Ethiopia has an estimated annual total exploitable fish potential of 51,481 tons, which can meet only 79 percent of the current actual demand, 55 percent of the projected demand in 2010 and 44 percent of the projected demand in 2015, based solely on population size. Ethiopia contains many lakes and rivers for fish production and also different species of fishes exist in these lakes and rivers. In addition to this there is good environmental condition for fishery and there is huge agricultural and Industrial by Product or residue due to the country mostly based on agriculture and also few industry to sustain the life of the people. Using of these opportunities fishery is an alternative means achieving food security and poverty reduction in Ethiopia. In spite of these opportunities, fishery sector of the economy has various problems, among others climate change, mismanagement of the resource, inappropriate policies and institution, inadequate technical and material backup to the sector and market are the major ones. The objective of this paper is to review the opportunities and challenges of fisheries in Ethiopia. Due to these challenges fishery is still an infant which means cannot fill the need of the demand. Therefore, the government and private should take consideration for fishery sub sector to increase productivity and gross domestic product of the country by alleviating these challenges.