Abstract: Fermented foods play an important role in human nutrition and protecting against infectious diseases. Ethiopia is one of the countries where a wide variety of traditional fermented beverages are prepared and consumed, not only of animal origin, but also of plant origin. In everyday life people enjoy fermented beverages and particularly when having guests, they like to treat them to traditional alcoholic beverages and fermented dairy products. Understanding the properties of traditionally fermented beverages and dairy products as well as a proper analysis of the indigenous processing steps are important in order to recommend appropriate manufacturing protocol and procedures for commercialization. The traditional beverages deals with popular products ; Among this Borde, shameta, tej, chaka, tella, Korefe, keribo and areki are plant origin brews and ergo (spontaneously fermented milk), ititu (spontaneously fermented milk curd), kibe (traditional butter), neter kibe (ghee), dhanaan (Ethiopian fermented camel milk), ayib (Ethiopian cottage cheese), hazo (spiced fermented buttermilk), arera (defatted sour milk) and aguat (acid whey) are animal origin products that each household produce. Substrates for their production are from locally available raw materials. This publication provides to determine the general principles underlying how the processing and keeping affects traditional fermented food quality, facilitate further investigations of the fermented food mechanisms that affect food quality. The indigenous dairy and traditional fermented beverages products have good nutritional and functional potential to scale up to commercial production. In conclusion, the review discusses the nature of beverage preparation and daily products in Ethiopia and traditional household processing.