Globally, rangeland degradation is a serious environmental problem, especially in pastoral and semi-pastoral areas that are constantly shrinking. Ethiopian pastoralists are highly affected like other parts of Africa due to climate change and other associated environmental problems. Hence, rangeland degradation is considered as a major obstacle to the pastoralist economy in Ethiopia. This review analyzes rangeland degradation, its causes, effects, and management practices in Ethiopia. This review paper has collected data mostly from published and unpublished documents and analyzed its connection with the contemporary Ethiopian context. The main causes of rangeland degradation are climate change, overgrazing, bush encroachment, population pressure, drought, government policies, encroachment on rain-fed agriculture, and the demise of traditional resource management institutions. Rangeland degradation causes significant losses in biodiversity, water potential, soil condition, animal performance, domestic animal husbandry, and community poverty. Despite these implications, the adoption of alternative recovery strategies in the country is woefully inadequate and needs much attention in turning policies and proclamations into practical ones. Ethiopia's Rangeland is economically, socially, and politically marginalized, and the region urgently needs a significant increase in investment and strengthened political support for sustainable land management to address the rangeland degradation issues.