Abattoir survey was conducted on 1,053 sheep and 639 goats slaughtered at Addis Ababa Abattoir, Ethiopia, between October 2007 and May 2008, with the objective to determine the prevalence of hydatidosis and assess the associated risk factors. Routine meat inspection procedure was employed to detect the presence of the cyst in visceral organs (lung, liver, and omentum). Hydatid cysts were found in 206 (19.94%) and 102 (16%) of the sheep and goats inspected, respectively. Statistically significant difference in infection rates was noted between the two species. Likewise, there was significant difference in infection rates between the two sexes and different age groups in both sheep and goats (P < 0.5). The study showed that hydatidosis is prevalent in Ethiopia. Thus, there is a need to introduce appropriate control measures to minimize the rate of infection and reduce the ensuing economic losses.