Cereals are the principal class of crops in Ethiopia in terms of area coverage (10.22 million ha), volume of grain production (25.38 million metric tons), engaging 16.24 million smallholder Ethiopian farmers for their livelihood, and economic importance with respect to food security in the country. In spite of this, the production and productivity of cereals in Ethiopia has been seriously challenged by a multitude of biotic and abiotic stresses resulted the national average grain yield has been very low (2.45 t/ha). Despite of this fact, a total of 391 improved cereal varieties which comprises 36 tef, 66 maize, 35 rice (15 upland, 11 lowland and 9 irrigated), 106 bread wheat, 35 durum wheat, 47 sorghum, 53 barley (37 foods and 16malt) and 13 finger have been released/registered up to date. These are accompanied as a package by a number of improved crop management agronomic/cultural practices, soil and water management, pest management, farm implement, and utilization and processing technologies. This paper presents an overview of the historical milestones, the major achievements recorded and challenges of cereal research in Ethiopia with special focus on the major cereals including tef [Eargrostis tef (Zucc.) Trotter], maize (Zea mays L.), bread wheat (Triticum aestivum L.), durum wheat (Triticum durum Desf.), barley (Hordeum vulgarae L.), sorghum (Sorghum bicolor L.), rice (Oryza sativa L.), and finger millet (Eleusine corocana L.).