<p>Urban agriculture in Ethiopia has become an essential livelihood strategy in response to the nation’s swift urbanization, economic challenges, and ongoing food and nutrition insecurity. This paper analyzes the diverse opportunities and obstacles of urban agriculture by evaluating its economic framework, structural limitations, and adaptive approaches. Urban agriculture in Ethiopia includes various methods such as agricultural cultivation, livestock rearing, composting, and aquaculture, typically occurring in confined areas like backyards, roofs, and communal plots. It plays a crucial role in employment, household income, food security, trash recycling, and urban greening. Nonetheless, its potential is insufficiently utilized owing to structural obstacles, such as restricted access to land and water, deficient regulatory frameworks, poor institutional support, social shame, and environmental risks. Economic data indicate that UA significantly contributes to GDP, urban employment, and microenterprise expansion; nonetheless, it is insufficiently acknowledged in urban development strategies. Beneficial circumstances such as increasing urban food consumption, heightened youth involvement, technological progress, and backing from NGOs present potential opportunities for integration. The potential for innovation via digital platforms, the reuse of treated wastewater, and climate-resilient urban agriculture reinforces the argument for institutionalizing urban farming. This article promotes an inclusive, integrated, and sustainable urban agricultural framework that aligns with Ethiopia’s urbanization and development objectives. It necessitates immediate policy integration, collaborative engagement among multiple stakeholders, and investments in innovation and capacity development to enhance urban agriculture practices for food resilience, economic inclusion, and environmental sustainability.</p>