The Ethiopian legend described in the Kebra Negast relates that Ethiopians are descendants of Israelite tribes who came to Ethiopia with Menelik I, alleged to be the son of King Solomon and the Queen of Sheba (or Makida, in the legend). The legend relates that Menelik, as an adult, returned to his father in Jerusalem, and then resettled in Ethiopia, and that he took with him the Ark of the Covenant. In the Bible there is no mention that the Queen of Sheba either married or had any sexual relations with King Solomon; rather, the narrative records that she was impressed with his wealth and wisdom, and they exchanged royal gifts, and then she returned to rule her people in Kush. However, the "royal gifts" are interpreted by some as sexual contact. The loss of the Ark is also not mentioned in the Bible.

However, most of the Beta Israel consider the Kebra Negast legend to be a fabrication. Instead they believe, based on the 9th century stories of Eldad ha-Dani (the Danite), that the tribe of Dan attempted to avoid the civil war in the Kingdom of Israel between Solomon's son Rehoboam and Jeroboam the son of Nebat, by resettling in Egypt. From there they moved southwards up the Nile into Ethiopia, and the Ethiopian Jews are descended from these Danites.

Other sources tell of many Jews who were brought as prisoners of war from Eretz Israel by Ptolemy I and also settled on the border of his kingdom with Nubia (Sudan). Another tradition handed down in the community from father to son asserts that they arrived either via the old district of Qwara in northwestern Ethiopia, or via the Atbara River, where the Nile tributaries flow into Sudan. Some accounts even specify the route taken by their forefathers on their way upstream from Egypt