This study compared the diagnostic accuracy of the Panbio™ COVID-19 Ag rapid diagnostic test (Ag-RDT) with quantitative reverse transcription polymerase chain reaction (qRT-PCR) for detecting SARS-CoV-2 infection in Ethiopia. Among 1364 patients, Ag-RDT showed 33.3% sensitivity and 99.3% specificity. Sensitivity was higher in patients with shortness of breath (73.3%) and those with fever, cough, and dyspnea (71.4%). Ag-RDT positivity correlated with viral load. While Ag-RDT offers a point-of-care option, its low sensitivity limits its use as a standalone diagnostic tool.