Background Neosporosis is a major cause of abortion in smallholder dairy farms in Ethiopia. However, its status and impact in pastoral cattle production settings were uncovered. This study was performed with the aims of estimating the seroprevalence and associated potential risk factors for Neospora caninum in Boran cattle in Teltelle district of Borana zone, Ethiopia. Methods 180 blood samples were collected from 48 randomly selected pastoral herds using a multistage sampling technique and subjected to an indirect enzyme-linked immunosorbent assay (ELISA) test to detect antibodies specific to N. caninum . A questionnaire survey was also used to identify the potential risk factors of N. caninum in the study area. Evaluation of the associated risk factors was conducted using a multivariable logistic regression model. Results Antibodies against N. caninum exposure were detected in 5% of cattle (95% CI: 1.816–8.184) from 180 animals tested. Similarly, the seroprevalence of N. caninum in herds with at least one positive animal was 14.6% (95% CI: 4.598–24.567) from 48 herds examined. A multivariable logistic regression model identified the following as significant risk factors: a history of abortion (AOR = 23; 95% CI: 2.354–188.702; P = 0.006), dystocia (AOR = 11; 95% CI = 22.275–55.860; P = 0.003), wells water sources (AOR = 9; 95% CI: 1.599–47.568; P = 0.012), and dogs fed with raw animal products (AOR = 6; 95% CI: 11.213–27.222; P = 0.028). Conclusion This study revealed the first serological evidence of N. caninum exposure in cattle reared under pastoral production system. Our findings suggest N. caninum is likely to be an important cause of abortion and dystocia in cattle in Ethiopia. Management practices, such as provision of hygienic water and restriction of dogs fed with raw animal products, are likely to reduce the risk of infection. Thus, maximizing community awareness about these disease management practices is suggested.