Plantations of exotic Eucalyptus make up more than 30% of Ethiopia's plantations, providing fuel and construction timber to the country. Species such as E. camaldulensis, E. saligna, E. grandis, E. citriodora and E. globulus are most commonly planted. During a survey of Eucalyptus diseases in 2000 and 2001, Botryosphaeria stem canker was observed in most plantations. The disease symptoms included tip die-back, coppice failure and stem cankers characterised by kino exudation. The aim of this study was to identify the species responsible for Botryosphaeria stem canker in Ethiopia. Culture and conidial morphology, as well as DNA-based identification involving Restriction Fragment Length Polymorphisms (RFLPs) and sequencing of the Internal Transcribed Spacer regions (ITS) of the ribosomal RNA gene and the elongation factor 1-alpha (EF1-α) gene, were used to identify isolates. Pathogenicity studies were conducted in the greenhouse and under field conditions. Results showed that Botryosphaeria parva is responsible for Botryosphaeria stem canker of Eucalyptus in Ethiopia. This is the first report of the fungus from this country. Greenhouse and field inoculation studies showed that the Ethiopian isolates are highly virulent. Careful site species selection and breeding trials are thus needed to reduce the impact of this disease in Ethiopia.