Stripe rust, caused by Puccinia striiformis f. sp. tritici, is one of the most important diseases of wheat in Ethiopia. In total, 97 isolates were recovered from stripe rust samples collected in Ethiopia in 2013 and 2014. These isolates were tested on a set of 18 Yr single-gene differentials for characterization of races and 7 supplementary differentials for additional information of virulence. Of 18 P. striiformis f. sp. tritici races identified, the 5 most predominant races were PSTv-105 (21.7%), PSTv-106 (17.5%), PSTv-107 (11.3%), PSTv-76 (10.3%), and PSTv-41 (6.2%). High frequencies (>40%) were detected for virulence to resistance genes Yr1, Yr2, Yr6, Yr7, Yr8, Yr9, Yr17, Yr25, Yr27, Yr28, Yr31, Yr43, Yr44, YrExp2, and YrA. Low frequencies (<40%) were detected for virulence to Yr10, Yr24, Yr32, YrTr1, Hybrid 46, and Vilmorin 23. None of the isolates were virulent to Yr5, Yr15, YrSP, and YrTye. Among the six collection regions, Arsi Robe and Tiyo had the highest virulence diversities, followed by Bekoji, while Bale and Holeta had the lowest. Evaluation of 178 Ethiopian wheat cultivars and landraces with two of the Ethiopian races and three races from the United States indicated that the Ethiopian races were more virulent on the germplasm than the predominant races of the United States. Thirteen wheat cultivars or landraces that were resistant or moderately resistant to all five tested races should be useful for breeding wheat cultivars with resistance to stripe rust in both countries.