Rice was considered a minor crop in Ethiopia, rarely consumed by many households in Sub-Saharan Africa. In recent decades, however, it has become the most rapidly growing staple food source in the country. This paper presents an historical analysis of rice commercialisation and the observed agrarian changes that have resulted from its introduction and spread in Ethiopia. The paper analyses the role of the state, private actors and development partners in promoting improvements in rice production and value chain upgrading, as well as examines the impacts of small-scale commercialisation on local livelihoods and rural economies.