Ethiopia has diverse vegetation ecosystems and home to large number of flora, fauna and microbial species. These provide suitable ecosystem services for environmental and diverse economic outcomes. However, there are threats to socioeconomic and biodiversity by invasive alien plant species (IPS). They cause threats to biodiversity, economic and health problems in Ethiopia. This paper addresses the ecological impacts of IPS on biodiversity in the major types of ecosystems, examine the impacts on socio-economic; discuss mitigation measures of the IPS in Ethiopia. Some of these species include Prosopis juliflora, Parthenium hysterophorus, Eichhornia crassipes, Lantana camara and Acacia species, which are the major threats to biodiversity losses. Water bodies, wetlands, disturbed vegetation types (e.g. Acacia-Commiphora vegetation type), agro-ecosystems, road sides, urban green areas, range lands are under threat of IPS nowadays in the country. Results revealed that under P. juliflora thicket for instance, 96% of woody species were constituted by P. juliflora than the overall 3.9% of woody native plant species. Moreover, it was also found that number of cattle, sheep, goats and camels were reduced by 56.2%, 25.2%, 19.2% and 48.6%, respectively after the invasion of P. juliflora in South Afar region. To minimize and control such invasions, different strategies are being applied such as eradication by utilization of P. juliflora in Afar region for example, and mechanical control of P. hysterophorus in different parts of the country. For use of sustainable ecosystem services, strategies such as integrated management strategies, participation of all stockholders and multidisciplinary research approaches within and across countries should be designed to reverse the situations.