The objective of this study was to examine the nature, extent and rate of soil erosion in the watershed using model estimate and GIS. The Revised Universal Soil Loss Equation (RUSLE) integrated with satellite remote sensing and geographical information systems (GIS) as a useful tool for conservation planning was used. Mean annual precipitation, FAO digital soil map, a 90 m digital elevation model, land-cover map, land use types and slope steepness were used to determine the RUSLE values. The result showed that the potential annual soil loss of the watershed ranges from 0.0 to 450.7t/ha/year and the mean annual soil loss rate is 68.7ton/ha/year. Beside this, annual soil loss ranged from 10 to 24.85ton/ha/year in the upper catchment, from 22.9 to 68.44ton/ha/year in the southwestern part of the watershed and up to 16.76ton/ha/year downstream. Moreover, the total soil loss in the study area was 30,318,92ton from 44,300 hectares. Based on the level of soil erosion rates, the study area was divided into four priority categories for conservation interventions. According to the study result, areas which are classified as severe erosion class covers an area of 6,950ha which is about 15.68% of the total watershed while high to very high erosion risk class covers an area of 33,700ha (76.03 %) and moderate erosion risk class covers an area of 3,650 ha(8.2%) respectively. As a result these critical sub-watersheds were prioritized based on their annual soil loss rate for future intervention and soil and water conservation measures.rnKey words: Soil Erosion, RUSLE;GIS; Soil conservation