Ethiopia is branded as the Water Tower of Africa because of its abundant inland water bodies that may be used sustainably to boost the economy. This review article's goal is to examine the current status and future potential of Ethiopia's fisheries, with a special focus on reservoirs. There are 200 known fish species (194 native, 40 endemic, and 11 exotic) in in Ethiopia's inland water. Ethiopia's fish production has increased by a factor of more than five in the past three decades (3,500 tons in 1983 to 15,681 tons in 2000 and 18,058 tons in 2010). However, fish produced in reservoirs is too low (8,059 t/year). The current fish harvests from reservoirs are significantly below the predicted potential yield, accounting for only 35% of the calculated fish production capacity.In this review, 14 potential reserves were revealed. A total of 48 fish species have been reported in these, of which 26 species (or around 54%) are present in Alwero reservoir. 19 of the 48 species that have been officially recognized belong to the Cyprinidae family and made up nearly 40% of the fish population in Ethiopian reservoirs. There has been, however, a decline in the productivity of Ethiopia's reservoir fish. Hence, actively start fishing in the numerous reservoirs that have been neglected yet, link the potential of fisheries and the benefits of the fish farming supply chain, let's begin building several other reservoirs similar to the Grand Ethiopian Renaissance Dam and beginning mechanized-based fish harvesting.