In the coming decades, world agriculture will need to under-go a major transformation to meet the future demands of a growing population. By 2050, the food industry will have to face the daunting challenge of feeding about 10 billion people by almost doubling its food supply in a sustainable way. Precision agriculture (PA) technology has proven effective in optimizing yield with minimum inputs and in reducing environmental pollution. The adoption of modern agricultural technologies remains to be a promising strategy to improve agricultural productivity, achieve food security and reduce poverty in Ethiopia. Despite the efforts to promote adoption in the country, the adoption rate has always been very low. So, it is essential to understand the determinants to the adoption of modern agricultural technologies. Thus, the main objective of this study is to determinants of adoption of PAT and to build a conceptual framework that consolidates the determinants of adoption of PAT by farmers. The level of adoption is variable in different countries as well as in different regions in a particular country. PA can be implemented in large and cluster farms as well as lowlands of Ethiopia particularly in irrigated fields. It can help to precisely level land, correct seeding, and application of the right amount of fertilizer, irrigation water, and pesticide based on the plant need. Despite its superior advantage, the high cost of machineries, software and skilled labor could scare the adoption of PA in Ethiopia. The adoption drivers of major influence are related to socio-economic, agro-ecological, institutional, technological and behavioural factors, in addition to the sources of information and perception of the farmer. At the individual level, factors promoting PA adoption included the technology’s relative advantages, observability, trialability, farmer experience in using technology, innovativeness, risk tolerance, education, and knowledge, whereas farmer age and technology complexity hindered PA adoption. Factors promoting PA adoption at the farm level included farm size, resource availability, and perceived need for technology characteristics, technology compatibility, social influence, competitive pressure, and government support. The study is based on an Ethiopian socio-economic survey of 2020/21 and a sample of 356 farm households is considered. The paper uses a multinomial Logit/Tobit model to assess the factors affecting the adoption decision of agricultural technology. The result shows that farmers with more educational level, family size, off-farm participation, extension service, credit access, advisory service, and farmers closer to plot, all-weather road, zonal town, and farmers with lower remittance income are more likely to adopt new or improved agricultural technology. Accordingly, the study provides crucial policy implications regarding the technology adoption in the agricultural sector for all regions of Ethiopia.