Addis Ababa is urbanizing at an increasing rate. Mobility problems and related negative impacts of motorized traffic and associated road safety issues remained to be a big challenge to the city. Improved cycling environment can play a greater role in solving those issues through reducing the exposure to risk of crashes and leading to a sustainable urban transportation. Among others, the benefits of increased level of bicycling are; health and physical fitness, clean environment, safe and cheap mode of transportation, particularly for a developing city like Addis Ababa. Regardless of the significant benefits of bicycling, the use of the bicycle as a mode of transportation in Addis Ababa is currently negligible and understudied. Furthermore, the cycling environment of the city faces many challenges. Some of the challenges are; lack of bicycle infrastructures, poorly maintained infrastructure, lack of bicycle policy and strategy. The supply of bicycle with reasonable price and lack of awareness of the benefits of using cycling as a mode of transportation are also another issue in the city. This paper is prepared to provide a review of the literature on the opportunities and challenges of bicycling in Addis Ababa. It focuses on evidence of (i) the opportunities of bicycling along with its challenges, and (ii) the current status of the cycling environment in the city. The main objective of this paper is to collect evidences that outline the potentials and problems the city faces to achieve a better cycling environment. It is expected to provide important information that can be used by transport planners, policy makers and researchers of the city improve the cycling environment. Going forward, the city has the intention to prioritize Non-Motorized Transport, including cycling in the city.