A cross-sectional study aimed at determining the prevalence and cyst characteristics and estimating the financial loss due to cystic echinococcosis (hydatidosis) in cattle slaughtered at Wolayita Sodo municipal abattoir was conducted from November 2009 to April 2010. Out of 546 cattle examined, 92 (16.85%) were found to harbor visible hydatid cysts. Significantly higher infection was detected in local (P < 0.05) than crossbred cattle. No significant variation was observed with regard to origin, sex, and body condition status of animals. Regarding organ distribution, infections of the lung, liver, spleen, and kidney were 57.78%, 35.46%, 8.75%, and 4.01%, respectively. Of the total 1,097 hydatid cysts counted, 952 (86.78%), 136 (12.4%), and eight (0.82%) were found to be small-sized, medium-sized, and large-sized, respectively. Likewise, out of 450 cysts assessed, 138 (30.67%) were fertile, 241 (53.56%) sterile, and 71 (15.78%) calcified. Of the 138 fertile cysts subjected for viability test, 13 (9.42%) were viable while 125 (90.57%) were nonviable. Moreover, assessment of annual economic loss due to bovine hydatidosis at Wolayita Sodo municipal abattoir from offal condemnation and carcass weight loss was estimated at 410,755.90 Ethiopian Birr (ETB; 30,202.64 US$; 1 US$ = 13.60 ETB). Despite the moderate magnitude of infection detected currently, there seems to be an existing socioeconomic situation favorable for hydatidosis, and hence, it remains one of the most important diseases warranting serious attention for prevention and control actions in Wolayita zone. Hence, establishment of well-equipped standardized abattoirs, creation of public awareness, and control of stray dogs are of paramount importance.