Ethiopia is believed to have the largest cattle population in Africa. The total annual milk production from cattle has been estimated at 3.5 billion liters from 11.38 million milking cows. As a result, cows’ milk is the focus of milk processing in Ethiopia. In Ethiopia the base of milk processing is fermented milk (Ergo), with no defined starter cultures used to initiate it. In Ethiopia only 6.6% of the total milk produced in the country marketed as liquid milk and the remaining 48.5% and 44.6% of produced milk is used for household milk consumption and processing, respectively. Out of 44.6% of milk allocated for household processing, 75% and 25% goes to butter and Ethiopian cottage cheese production, respectively. Thus, the products could be easily transported to market place, and also fetch better prices or returns. The microbiological information on traditional butter is not fully available in Ethiopia. However, the available previous research works conducted in Ethiopia revealed that the microbial count of butter is generally above the acceptable limits set for quality butter. The presence of bacteria in butter reduces the keeping quality of the product and certain bacteria with their associated enzymes and toxins may even survive high temperature and create public health hazards. The potential sources of butter microbial contamination are raw materials, air, water and equipment, and usually occurred during processing, packaging and storage of finished product. Therefore, all precautions should be taken to avoid contamination of butter and public health hazards.