Precision Agriculture (PA) includes several techniques, technologies and management factors aimed at addressing field variation that affect crop yield by using more precise land leveling, seeding, fertilizer application, irrigation and pesticide use in order to optimize crop production, improve profitability and reduce environmental risk. PA recognizes temporal and spatial variability of production fields through information acquisition; interpretation; evaluation; and control. This can be achieved using map or management zones based on soil survey and property data or real time based for variable rate application of inputs while on the go. It has been shown that PA conserves irrigation water and power, improves profitability through correct application of fertilizers and pesticides, and reduces environmental risk. PA can be implemented in large and cluster farms as well as lowlands of Ethiopia particularly in irrigated fields. It can help to precisely level land, correct seeding, and application of the right amount of fertilizer, irrigation water, and pesticide based on the plant need. Despite its superior advantage, the high cost of machineries, software and skilled labor could scare the adoption of PA in Ethiopia. However, studies have shown that the benefits of PA out weights the cost and it can contribute to food security significantly.