Cystic echinococcosis (CE), also called hydatid disease (HD) is a parasitic disease caused by larval stage of Echinococcus granulosus and is considered as a food-borne zoonotic, neglected tropical disease (NTD). Backyard slaughtering and inadequate veterinary services are major risk factors for high prevalence of the disease in developing countries. Here, we determined the prevalence of HD in the cattle slaughtered in the municipal abattoir of Jimma Town, Southwest Ethiopia by an abattoir based cross-sectional study, which included 389 randomly selected cattle. The source of cattle, age, sex, breed, the body condition and any acute illness were assessed in ante-mortem investigations. Moreover, during post-mortem examination, vital organs suspected for hydatid cysts (HCs) were carefully examined by close inspection, digital palpation and sharp incision. Fertility and viability were tested for all HCs containing hydatid fluid. The overall prevalence of HC among the cattle was 52.9% (206/389). Lungs were the most affected organ 70.9% (146/206), and 29.6%, 62.1%, and 8.7% of the HCs were fertile, sterile and calcified, respectively. The HC abundance and viability had statistically significant association with the organs affected, and fertile HCs were most common at lung. Collectively, our study revealed that CE is highly prevalent in slaughtered cattle at the Jimma area, Ethiopia and lungs are the major affected organs. An integrated prevention and control strategies from various sectors through 'One Health' approach are essential to tackle the problem, and proper awareness must be built up among people about the devastating effects of the disease.