Simple Summary: Although breeding and selection schemes improve genetic gains, it appears to also result in higher levels of inbreeding, which may adversely impact the genetic diversity of dairy cattle populations. The present study was designed to analyze the reproductive performance, population structure, inbreeding, and genetic diversity of Ecuadorian Montbeliarde cattle obtained by absorption crossing. It was concluded that inbreeding rates and genetic diversity losses increased linearly over time, being very close to critical levels, which could result in negative effects on the conservation purposes of Montbeliarde dairy cattle. Montbeliarde dairy cattle were introduced in Ecuador with the aim of ameliorating the production performance of other cattle breeds. The aim was to analyze the reproductive performance, demographic structure, inbreeding, and genetic diversity of Montbeliarde cattle obtained by absorption crossing. Official pedigree records from the Ecuadorian Montbeliarde Association were used. The total population was divided into seven populations: (i) historical (all individuals), (ii) 1999-2003, (iii) 2004-2008, (iv) 2009-2013, (v) 2014-2018, (vi) 2019-2023 (current), and (vii) reference (individuals with known parents). Demographic structure variables analyzed: pedigree completeness index (PCI), number of equivalents (GEqu), complete (GCom) and maximum (GMax) generations, and generation interval (GI). Inbreeding-derived variables analyzed: inbreeding (F), inbreeding increment (Delta F), average relatedness (AR), co-ancestry (C), non-random mating (alpha), effective population size (Ne), and genetic conservation index (GCI). Gene origin probability/genetic diversity variables analyzed: number of founders (f), effective number of founders (fe) and ancestors (fa), number of equivalent genomes (fg), fe/fa and fg/fa ratio, and DG losses. The databases were analyzed by ENDOG, POPREP, and CPC software. PCI in the historical population compared to the current population decreased from 72.95 to 65.87% (sire/dam pathway), while the GI decreased from 7.17 to 3.08 years when the historical and current populations were compared. Dam reproductive efficiency increased over time. Moreover, F = similar to 1%, AR = 2.06%, Delta F = 0.22%, C = 1.03%, alpha = -0.0077, GCI = 3.12, and Ne = 58 values were obtained. Gene origin probability in the reference population was f = 439, fa = 37, fe = 71.64, fg = 23.43, and fg/fe = 0.33, showing a GD loss due to unequal contribution of founders (0.55%) and bottleneck and genetic drift (4.25%). In conclusion, the Ecuadorian Montbeliarde cattle population displayed a relatively low diversity and high genetic relationship. Inbreeding levels increased while Ne values decreased over time. The introduction of new purebred bloodlines could be important to minimize the inbreeding levels ensuring the long-term conservation of this breed and minimizing GD loss.