Ethiopia is a center of origin and diversity of many cultivated crops and their wild relatives including barley. The richness and range of genetic diversity in Ethiopia, particularly of landraces, is currently subject to serious genetic erosion and irreversible losses due to the changing nature of agricultural production. In this review, the most important factor possibly leading to genetic erosion is the replacement of FV’s by modern cultivars followed by weather variability. Barley, as a food and feed grain, is important to the livelihood of farmers. A number of previous studies have shown higher level of barley diversity in the highland of the country. Traditional barley variety is suffering serious genetic erosion due to displacement by introduced varieties. Knowing the causes of genetic erosion is equally important for devising conservation measures. In conclusion, the use of genetic resources will remain the best way of meeting future food needs and driving the economic and social benefits for the world’s rapidly growing human population.