This study was conducted in Dhabe Dongore catchment, in Adama area to analyze the impact of sustainablernland resources management on agricultural production and rural livelihood. The study is based on a comparisonrnof land management practices of communities in Dhabe Soloke Kebele and members of Sulula Golba Gudarn(SGG) who organized themselves to manage their land resources, in Dongore Denku Kebele. The Data wasrngenerated through socioeconomic survey including a household level semistructured questionnaire, PRArnmethods such as focus group discussion, informal interviews and biophysical survey that include soil qualityrnanalysis and gully erosion quantification.rnNearly all farmers indicated that deforestation is a major and common problem that causes severe landrndegradation in both study areas. Conversion of the forest to farmland, indiscriminate cutting of trees for fuelrnwood and charcoal making and inappropriate agricultural practices are the main causes of deforestation,rnmentioned by the respondents.rnRemoval of nutrients, poor soil nutrient and organic matter management, poor use of manure and compost, lackrnof management of crop residues and inappropriate agronomic practices are common problems in both studyrnareas. But the analysis has showed that members of SGG have a better coping mechanism or managementrnstrategies to mitigate the mentioned problems. The community based management of grazing land and forestrnundertaken by members of SGG is found to be more effective and enables the sustainable utilization of thernresources than practiced by farmers of Dhabe Soloke.rnLaboratory analysis of soil samples from the farm fields of members of SGG has shown significant difference inrnorganic matter content, CEC, exchangeable cations and available potassium compared to soils in Dhabe Solokern(p