Sorghum is a multi-purpose crop that plays an important role in the socio-economic life of farming communities. The covered kernel smut disease caused by Sporisorium sorghi is one of the most devastating seed-borne diseases and also the main constraints contributing to the low productivity of sorghum resulting in yield losses in Ethiopia. Therefore, this study was conducted to assess the distribution of covered kernel smut disease (Sporisorium sorghi) in sorghum production (sorghum bicolor L.) and to manage covered kernel smut disease through host resistance and fungicide seed treatment in west Belesa district during the 2022–2023 cropping season. The survey was conducted in five major sorghum-producing kebeles of west Belesa district. A total of 50 sorghum farmer’s fields were assessed. For the field experiment, three sorghum varieties (Local, kalu, and Giragna-1) with three fungicide seed treatments, including: cow urine, neem leaf extract and thiram 80% WP at 10 g/4kg were used. The treatments were arranged in a randomized complete block design in factorial combinations with three replications. The disease, yield, and yield-related data were subjected to analysis of variance using the general linear model procedure of SAS 9.4. The survey result indicated that a high mean incidence (51.49%) and severity (45.80%) were recorded at shura and a low disease incidence (30.43%) and severity (31.57%) were recorded at Dikauna Keble administration. The field experiment results revealed that the interaction of variety with fungicide seed treatment had a significant effect on sorghum covered smut disease. The minimum disease severity (23.05%) was recorded from Kalu with thiram seed treated while the maximum disease severity (58.64%) was recorded from an untreated local variety on the last day of assessment. The highest AUDPC (320.93%-unit day) was recorded from an untreated local variety, while the lowest AUDPC (112.05%-unit day) was recorded from a Kalu variety with Thiram fungicide treated. In this study, Kalu sorghum variety with fungicide treatment, particularly with thiram provided the best result in terms of covered kernel smut disease management and yield production.