Nowadays worldwide projected growth of population pressure with a steadily growth of disposable income and urbanization corroborated by global markets corridor are expected to elicit a substantial increase the demands of high value foods. These situation causes to exploit the aquatic ecosystems mainly for fish, the largest single source of animal protein and fastest growing food commodity. Likewise, Ethiopia has enormous potential of freshwater (126.5 BMC) available per year; plus favorable environments considered to be significant scope for fisheries development for fish yield (about 94,509 ton/year + 5.3% as 73,104 ton/year + 3.3% for lentic and 2,1405 ton/year +11.8% for lotic ecosystems). Ethiopian water resources deduced to hold over 180 fish species, freshwater shrimps, crabs, mollusks, commercially important microalgae, and vegetation. However, currently actual fish yield is (about 51,581 ton/year) much far below expected level, which resulted in lower per capita consumption of fish per year (0.216 kg) compared to other African countries. This is attributed to several constraints in which, traditional methods of fish farming and fishing, limited awareness, management skills, skills and technological knowhow; besides the impacts of climate change and global warming, ecosystems degradation, mismanagement, siltation, growing toxic weeds in most lakes, with marked overfishing practices by fishermen are the dominant challenges. To reverse these scenarios into the desired track, urgent intellectual measures should be at hand in Ethiopia. Therefore, this article was studied through the collected 19 years’ published and unpublished source materials, data analyzed and empirical models were applied to explore updated fundamental information on current potential of fisheries resources and overall status of aquaculture development, so as to create better understanding, and to suggest scientific strategies and better approaches for the sector contribute in the sources food, employment, and livelihood in Ethiopia. Finally, this paper is recommended to be beneficial to the readers and policy makers for the fisheries and aquaculture development in Ethiopia and the region.