Biotechnology is one of the sectors with significant contribution in modernizing agriculture. Developed nations have been using biotechnology in the areas of health, agriculture, industry and environment. It has tremendous potential in better responding to emerging agricultural problems. Ethiopia has started research in agricultural biotechnology a few decades ago. However, research and public awareness on biotechnology is inadequate. This paper is meant for reviewing the historical developments, progress of agricultural biotechnology, identify gaps and indicate key action points. All the information in this paper was obtained from published papers and other accessible resources. There are significant achievements and progress since the establishment of full-fledged agricultural biotechnology research at the Ethiopian Institute of Agricultural Research (EIAR). Several molecular researches were undertaken by many Ethiopians and scholars but not documented. To progress in this sector, the country needs to exploit the potential advantage of this science and invest in research and developments in the area. All the debates and voices against this science should be based on scientific evidences and improving public awareness is compulsory.