Accelerated soil erosion is one of the critical problems in Ethiopia. It is estimated thatrnthe country loses 1.9 to 7.8 billion tons of soil a year and this cost the country close tornone billion ETB. This study was carried out with the main objective of quantifying thernstate of soil erosion risk and identifying the most vulnerable areas to soil erosion inrnGerbi River Watershed, which is the upper part of Abbay Basin, using the RevisedrnUniversal Soil Loss Equation(RUSLE) model and Multi-criteria Evaluation(MCE)rntechniques with the integration of Geographical Information System (GIS). Satelliternimages, rainfall data, soil data and Digital Elevation Model were collected andrnprocessed to generate the RUSLE and MCE factors. Based on RUSLE, rate of annualrnsoil loss was calculated for three different periods. Accordingly, the rate of soil lossrnfrom the watershed was increased by about 65% within the gap of 28 years. Currentlyrn(2013), about 158,830 tons of soil, with the rate of 22.69 ton/ha/yr, was eroded fromrnthe total area of 70km2 annually. According to the amount of soil loss, about 16.34%rnof the watershed is under the category of severe and very severe soil erosion risk andrn36.97% in slight and moderate category. Without the present LULC of the area, thernworst possible situation of soil loss rate can reach up to 168 ton/ha/yr. Based onrnMCE analysis, about 13.2% of the watershed is under the category of very high soilrnerosion risk, and this area has an average Composite Erosion Index (CEI) value,rnranged from 2.87 to 3.24. According to the results of the two approaches (RUSLE andrnMCE), East part of the watershed, which is characterized by steep slope, cultivatedrnland and high soil erodibility, is under high erosion risk. There is a plan of reservoirrnconstruction that collects raw water from the watershed and the local people arerndependent on crop production. As a result, it is recommended that the woredaâ€™s soilrnand water conservation experts should create awareness to the local people about thernsoil loss, particularly, from erosion prone sub-watersheds and apply the appropriaternand effective soil water conservation mechanisms.rnKey words: Gerbi River Watershed, GIS, MCE, RUSLE, Soil Erosion