A cross-sectional study was conducted from November 2009 to March 2011 to determine the prevalence of cysticercosis/teniasis and to estimate the treatment cost of the disease in Yirgalem, Ethiopia. Abattoir findings, a questionnaire survey and inventories of pharmaceutical shops were used in the study. Of the 400 inspected animals, 48 (12%) had varying numbers of Cysticercus bovis. The anatomical distribution of the cysts showed that the highest proportions of C. bovis cysts were in the tongue, followed by the masseter muscle, liver, shoulder and heart. Of a total of 190 C. bovis collected during meat inspection, 89 (46.84%) were alive. Viability tests revealed that the tongue harbored the highest number of viable cysts (63.16%), followed by the masseter (44.23%), the liver (41.38%), and the heart (40%). Of the 170 interviewed respondents, 119 (70%) had contracted a Taenia saginata infection, and among them 85% reported using modern drugs, whereas the rest (15%) used traditional drugs. The majority of the respondents consumed raw meat as part of traditional or religious practices. Human teniasis prevalence showed significant differences (p < 0.05) in relation to sex, religion, occupational risk, marital status and raw meat consumption. Thus, men (p = 0.001), Christians (p < 0.001), occupationally high-risk groups (p < 0.001), married persons (p = 0.016) and raw meat consumers (p < 0.001) were at higher risk of being affected by teniasis than women, Muslims, occupationally low-risk groups, unmarried persons and cooked-meat consumers, respectively. In this analysis, no statistically significant difference was observed in relation to the age and educational background (p > 0.05). An inventory of pharmaceutical shops revealed the purchase of 472,013 adult teniacidal drug doses for a cost of 1,416,039 Ethiopian Birrs (about 88,500 USD) during a five-year period (2005 to 2009). Mebendazole and niclosamide were the most frequently drugs sold for teniasis treatment, whereas praziquantel was the least sold one. In conclusion, the study revealed a high prevalence of T. saginata metacestodes in the organs at the abattoir, and highlighted the deeply rooted tradition of raw meat consumption. Authorities should focus on this disease to preserve public health and consequently promote the beef industry in the country.