The salt problem in Ethiopia has been further exacerbated by a number of factors, including poor water quality, ineffective on-farm water management techniques, and a lack of appropriate and technically sound drainage infrastructure at irrigation sites. Despite its importance, no systematic review or documentation of the extent and consequences of the problem has been made so far. This scientific review primarily focuses on original studies published in the country, notably in arid and semi-arid regions where salinity issues have a significant influence. The data indicated that soil and irrigation water salinity have a substantial link with crops and agricultural communities in Ethiopia. Salinity has a significant impact on soil and water fertility, resulting in poorer agricultural production, food insecurity, and poverty. Salinity has a significant impact on crops in the country, from the germination stages to the harvesting stages during the growing season. If the current state of soil and water management continues, the severity of both soil and irrigation water salinity will reach an irreversible level that significantly impedes the country’s agricultural production capacity. As a result, cultured irrigation water treatment, crop selection based on salinity and sodicity levels, irrigation water quality, leaching, and fertilizer use in combination with organic manures are scientifically proven actions to address the salinity problem. Furthermore, to adequately reclaim and manage salinity in Ethiopia’s dryland saline zone, multi-stakeholder participation is required.