Mathematics unit as part of the former Division of Natural and Social Sciences (DNSS) of the then Alemaya University of Agriculture, was offering introductory courses to agriculture students. However, since 1994, Alemaya University of Agriculture has evolved into a multidisciplinary higher learning institution.  As the result the former DNSS was upgraded to a full-fledged Faculty of Education and Mathematics unit to department level in the year 1996.

By the time of its inception in the year 1996/97, the department launched a four year B.Ed. program in Mathematics minor in Physics. However, with the introduction of a new education policy in 2003/04, it was revised to be a three year program. Since then, the Department of Mathematics is running B.Sc. degree in the regular and summer-in-service programs. The department is involved in delivering courses to different Schools and Departments of the University, carrying out research works and also providing community services. In all of the aforementioned and other related activities, the contribution of the department was significant at the university and also at national level.

With regard to the postgraduate program, following the national policy of higher education expansion, the department launched postgraduate programs leading to M.Ed. and M.Sc. in Mathematics in the academic years 2007/08 and 2008/09, respectively. In 2018/19 the department launched M.Sc. Program in Mathematical Modeling. Due to the high demand of the Ministry of Science and Higher Education for highly trained human power, the Department of Mathematics launched a course-and-research based PhD program in Mathematics in the academic year 2020/21. The graduates of these programs are expected to teach in higher learning institutes and conduct scientific researches that may contribute to the development of the country. The program will have a set of courses covering different dimensions with more emphases on applications in real life phenomena.

The department currently offers B.Sc. and M.Sc. degree programs in the regular and summer-in-service modes, as well as a PhD program in the regular mode. The Department, in particular, provides M.Sc. and PhD programs in Algebra, Numerical Analysis, Optimization, Operations Research, and Mathematical Modeling. In addition, the Department is about to start a B.Sc. degree program in Non Regular Program (Continuing Education Program).