Adansonia digitata L (Baobab) is a large plant species which thrives in many semiarid regions of the world with remarkable economic and nutritional importance. In Ethiopia, it grows in deserts and hot lowlands. Industrially, baobab fruit pulp (powder) is used for producing good quality jams. This study was carried out to (a) develop a formulation protocol for producing high-quality baobab jam, (b) characterize the jam using standard physicochemical, microbiological, and sensory evaluation methods, and (c) examine the effects of time and temperature of storage on the quality as well as shelf life of the jam. Out of the seven formulations tested, a formulation enriched with 55 g table sugar, 45 g baobab fruit powder, 0.50 g ascorbic acid, and 0.40 to 0.60 g citrus pectin jelling (formulation no. 6) and another one enriched with 60 g table sugar, 40 g baobab fruit powder, 0.50 g ascorbic acid, and 0.40 to 0.60 g citrus pectin jelling (formulation no. 7) resulted in the best jam products. The jam product of formulation no. 7 enriched with 0.50 g ascorbic acid and 0.60 g citrus pectin jelling was better in terms of storage stability and sensory acceptability. Increasing storage time (up to 45 to 90 days) and temperature (from 10–12°C to 25–27°C) lowered the products’ nutritional quality and sensory acceptability. High-microbial growths were observed in the products stored at higher temperature longer, but all the microbial loads were far below the acceptable limit. In the absence of measures that improve their shelf lives, household and small-scale jam products have to be consumed fresh or within weeks after their preparation.