Natural resources have been degrading due to intensive agricultural activities in manyrndeveloping countries. To rehabilitate the degraded natural resources watershed managementrnpractices has became the key approach to minimize loss of such resources. In Ethiopia therngovernment was tried to implement soil and water conservation (SWC) measures throughrncommunity campaign. The study examined the impacts of watershed management practices onrnsmallholder farmersâ€™ livelihood in Hidabu Abote Woreda, North Shewa, Oromia regional State,rnEthiopia. The study employed a mixture of qualitative and quantitative methods. Data wasrngenerated through household (HH) survey, key informant interviews, focuses group discussionrnand observation. The quantitative data were generated from 266 household, where the samplernsized detrained by standard method. Additionally, tables, graphs, narrative method, Pearson chisquare was used to examine the association between the activities of WSM and livelihood ofrnsmallholder farmers. The analysis shows that, physical and, biological SWC measures andrnagronomic practices were the most commonly implemented activities to conserve naturalrnresources thereby increase land productivities and improved smallholder farmerâ€™s livelihood. Asrnthe part of Watershed Management practices the forest/trees conservation, livestock feed andrngrazing land management and water sources conservation undertaken by different ways.Thernpearson Chi-square statistical analysis revealed that all these activities have considerable rolernin increasing particularly crop yields. Different factors constrained the WSM practice thatrninclude lack of training and low quality of trainings given either for extension or farmers, lack ofrnappropriate technology, open grazing, deforestation, limited maintenance of SWC structures,rninadequate extension services, insufficient (small) farmland holding, shortage of cash income torncover agricultural input costs, poor (backward) agricultural practices, fearing reduction ofrnfarmland size due to land closure for conservation. The study also verified that WSM have greatrnrole in creating job opportunity in order to enhance income and livelihood of smallholderrnfarmers. Irrigation, cattle fattening, beekeeping, forest and tree seedling production in developedrnwatershed and significant change viewed on socioeconomic, environment and on attitude ofrnfarmers after WSM practice implemented.The policy makers and actors emphasize on the solvingrnthe limitation through providing technical or action oriented training and awareness creationrnthrough considering indegineus knowledge, allocation of extension service and providernmaterials (tools) used SWC are the key reccomondation finded