Livestock production methods in Ethiopia are usually subsistence system with low productivity. Henceforth this paper is expected to gather the information on challenges, opportunities and genetic improvement of Ethiopian sheep and goat productivity. It is further provides highlights on Ethiopian sheep and goat breeds, production systems, constraints such as feed shortage, diseases, absence of enhanced technologies and inputs, institutional, administrative and program support, lack of improve genetic potential of indigenous breeds and conservation, advancement and utilization of AnGRs. However, information extends on past and present genetic improvement and opportunities for example institutional backing for domesticated animals research and advancement, practical use of animal genetic resources, creating different systems of production, practical involvements and intensifying emerging export market of sheep and goat in Ethiopia. Therefore, there is an urgent need to take different measures to tackle these constraints in order to exploit diverse genetic potentials of these animals.