Crop residues, the fibrous by-product of harvested crops has significant implications for current and future socio-economic and environmental outcomes. It is a precious and/or scarce resource that applied for multipurpose use, although competing applications of crop residues has been creating multifaceted challenges in Ethiopia. This review paper aimed to gather and compile scientific findings and facts about crop residues use in different parts of country. Having multiple determinants, the type and use of crop residue is quite different from region to region and place to place. The types of residues used are mostly field crop left overs, legumesand pulse haulms. Smallholders used their crop residues for animal feed, fuel, construction, soil amendment and for sale with varied proportion. Many literatures confirmed that, crop residue use in Ethiopia is mostly for livestock feed and biofuel source. Decline in natural pasture accompanied by loss of its valuable species and shortage of firewood, inaccessibility of alternative energy source at rural areas are the major causes of using crop residues for livestock feed and fuel source at the expense of soil fertility management in Ethiopia. In one way or another, competitive use of crop residues without retaining adequate amount on farm resulted in poorsoil biological, physical, and chemical properties thus; decline in soil nutrient status and aggravated soil erosion which in turn decrease crop productivity and worsening food security at large. Obviously, theproduct of crops and animals as well as energy isconsistentlydemanded. From the sustainability stand point of views, mixed type of farming should be operated in complimentary way. Based on the existing trend in crop residues use in Ethiopia, smallholders should allocate and retain proper share of their crop residues for soil fertility management purpose and above all, theuse of crop residues should be viewed from conservation agriculture (CA) practice.
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