In Ethiopia exotic sheep, cattle, and goat breed importation was initiated in early 1944, the 1950s, and
1975, respectively to improve the productivity of indigenous animals through crossbreeding. However, the
per capita consumption of livestock products is still below the standard and cannot supply the ever-increasing
human population. Thus, this paper reviews the current status of livestock crossbreeding, causes for failure
and discusses how it can be implemented for the future without harming the indigenous animal genetic
resources. A cattle crossbreeding has led to higher milk production per animal. A two to fourfold increment in
lactation milk yield, 47 to 155 days increment in lactation length and 9 to 32% improvement in yearling weight
than indigenous breeds were reported for crossbred cattle. Sheep crossbreeding programs using Awassi sheep
breed improved the livelihood of smallholder in the highland areas and they start to produce genetic materials
with its limitations. On the other hand, the decline in fitness traits (survival and reproduction) is reported for
crossbred cattle and sheep. Both dairy and meat goat crossbreeding programs were not successful under the
smallholder management system. Generally, the possible benefits from livestock crossbreeding were not fully
exploited. The possible determinants for unsatisfactory achievements and poor sustainability were found to be the
absence of a well-established breeding plan, lack of feed resources, poor veterinary services, lack of sustained
funding, lack of basic understanding of crossbreeding, poor efficiency of reproductive technologies, access to
financial credit and low involvement of smallholders in the implementation of the program. Therefore, careful
planning considering the feasibility and sustainability, promoting alternative feed resources, improving
veterinary services, enhancing the efficiency of assisted reproductive technologies, sustainable financial
support and improving the record-keeping system are all vital for successful and sustainable livestock
crossbreeding program.