A cross-sectional study was conducted from December, 2014 to April, 2015 to estimate the prevalence of hydatid cyst, investigate associated risk factors, and evaluate organ level distribution of the cysts in cattle slaughtered at Nekemte Municipal abattoir, Western Ethiopia. A total of 525 samples were collected and processed. The study animals were selected by systematic random sampling technique. Potential risk factors were assessed through antemortem examination. Postmortem examination was done, which included primary examination (visual inspection and palpation of lung, liver, heart, spleen and kidney) and secondary examination, which involved further incision into each organ if single or more hydatid cyst(s) was found. Descriptive statistics were used to summarize the prevalence of bovine hydatidosis and Chi-square (X2) test was applied to compare the infection status with regard to the hypothesized risk factors and (P<0.05) was set for statistical significance. The overall prevalence of hydatid cyst was 18.29 % (95%:14.97-21.60). Out of the 96-cattle harboring hydatid cyst, 63 (65.6%) animals were infected only in single organ whereas the remaining 33 (34.4%) infected animals had multiple organs involvement. From the total 96 hydatid cyst infected cattle, 34 (35.4%) of hydatid cyst were in the lungs, 29 (30.2%) in livers and 33 (34.4%) in multiple organs. The statistical analysis revealed that there was no statistical association (P>0.05) between the prevalence of bovine hydatidosis and animal sex or body condition, although there was a significant association (P<0.05) with age and origin of the animals. In conclusion, the disease is widespread in cattle slaughtered and is major cause of organ condemnation at Nekemte Municipal abattoir and efficient meat inspection service and safe disposal of condemned organs should be practiced.