Water is a scarce resource and the competition for it is increasing from time to time due to population growth and economic status change. The population growth leads to high expectations to produce more food from irrigated agriculture which could not be satisfied by rain-fed conditions. As irrigated agriculture is by far the largest water consumer in an inefficient way, improving water productivity has paramount importance both for the production of more food and for wise utilization of scarce water. Beyond these, studies suggest that improving water productivity in Ethiopia contributes to an increase in the irrigated area, reduced competition, and conflict between users, increased profitability due to reduced labor cost, water pumping and working time, and generally increased food production. Different water productivity improvement techniques and water conservation methods have been tested in different parts of the country. These include improving the performance of irrigation schemes, regulated deficit irrigation practice, partial root zone drying, application of irrigation on selected crop growth stages, supplementary irrigation, drip irrigation, surge and cutback irrigation, and water conservation methods like mulching and integrating irrigation with conservation agriculture. The level of water productivity improvement varies considerably for different methods, study areas, crop types, and seasons. Generally, more studies concentrated on deficit irrigation and irrigation application at different crop growth stages. Water conservation and integration of cultivation practices with efficient irrigation led to an improvement in water productivity. Despite few studies, scheme-level study results suggest that the level of deficit irrigation should be selected based on the available irrigation water and cultivable land area for maximizing the benefit of the scheme. According to the economic profitability, crop types and crop varieties also should be selected for production with site-specific conditions. Despite different types and levels of reduced irrigation leading to lower crop yield, the inclusion of the economic importance is essential as most crops showed higher water productivity at lower irrigation levels. On the other hand, studies on the integration of different water productivity enhancement techniques and crop planting patterns are minimal in the country, though current studies revealed better water productivity. Moreover, basin-level water productivity improvement studies could contribute to alleviating water competition and increasing irrigated areas. Therefore, studies on the optimization of these different methods could be done at the basin level for better water resource utilization. Government policies should also focus on water productivity improvement for the implementation of research findings.