This review paper analyses the challenge and opportunities of information and communication technologies for dissemination of agricultural information in Ethiopia. Understanding the challenges and opportunities of information and communication technologies enables to solve the problem of information problem to smallholder farmers. The data was collected, assessed and reviewed from recent secondary data sources from Central statistical agency, and scholarly articles published on the issue of information and communication technology in agriculture (ICT 4 Ag).Compared to the other sector like governance, health and education sectors, ICT-adoption in the agricultural sector has started relatively late in Ethiopia. Even though it is in infant stage, there are many agricultural ICT related service and application in Ethiopia. The current radical penetration of ICTs like mobile phone, website, social media and other internet/online services brings an immense prospect to farmers to create, share, store, process, interpret and preserve agricultural information and knowledge. ICT related agricultural extension system is the solely choice for dissemination of agricultural knowledge and information. Ethiopia is the country which has more than 65000 extension personnel for agricultural extension. But this extension system is not sustainable since it is very costly and inefficient. Thus, agricultural extension policy and intervention should focus on ICT based extension system.