LULC change is conversion of one cover type to another and/or modification a changernwithin one land use category and it is an undeniable global trend. This study wasrnconducted in Legedadi reservoir watershed in North Western Shoa Zone Aleltu andrnBereh district where there is high soil erosion which aggravated by LULC change. Thernobjectives of this study were to examine the LULC dynamics in the Lagedadi watershedrnin the last three decades, to identify the main drivers of LULC change in the watershed,rnto map the soil erosion risk and determine sedimentation to the reservoir and prioritizernland management intervention in the watershed. Three time series satellite imageriesrn(Landsat TM 1985, TM 1997, and ETM+ 2013) have been utilized for LULC changernanalysis. The landcover map of the year 1997 and 2013 were used to produce the soilrnerosion risk map. Rainfall data, soil data, DEM data and satellite images were used asrninputs to generate the RUSLE factor values. The research put together the RevisedrnUniversal Soil Loss Equation (RUSLE) with a Geographic Information System (GIS) tornquantify the potential soil erosion risk. Raster calculator was used to interactivelyrncalculate potential soil loss and prepare soil erosion risk map. The results indicate arncontinuous and active LULC change at various spatial and temporal scales. In the last 28rnyears, settlement area and cultivated land were dramatically increased by 14.34 % andrn18.3%, and on the other hand grazing land and bare land were reduced continuously byrn25.74% and 18.47 % from 1985 to 2103 respectively. The potential annual soil loss of thernwatershed ranges from 0-257.195 ton/ha/year in 1997 and 0.0 to 330.013ton/ha/year inrn2013. The mean annual soil losses are 54.19 t/ha/yr in 1997 and 66.21 t/ha/yr in 2013.rnThe average annual soil loss from each sub-watersheds ranges from 34.57 to 89.19rnt/ha/yr. Prioritizing sub-watersheds which are, first stage (B and A) and second stage (Crnand D) need urgent solutions. Therefore, appropriate land use planning, physicalrnconservation mechanisms (Terracing and Contour ploughing) and biologicalrnconservation (Afforestation and area closure) should be implemented.rnKey Words: Legedadi Dam, Watershed, LULC Change, Soil erosion risk, RUSLE, GIS