Fincha Amerti Neshe sub-basin is densely populated causing various effects on resource bases becausernof deforestation, expansion of residential area, and agricultural land. The sub basin is also facing highrnerosion by the effects of intense rainfall of the watershed which aggravates the land cover change of thernwatershed. The objective of this study was to evaluate the dynamics of land use land cover change andrnits effects on stream flow using SWAT model in Fincha Amerti Neshe watershed. The land use landrncover change analyses were performed using ERDAS Imagine 2014 which was used for an input inrnanalysis of SWAT. Land use land cover changes for three different years of 1990, 2000 and 2015 landrnuse scenarios were used for estimation of stream flow. During the study period most parts of therngrassland and shrub land were changed to cultivated land. An increase of cultivated land by 18.57% overrn25 years period (1990 – 2015) resulted in an increase of stream flow by 13.39m3/s. In Amerti, there wasrnalso an increase of cultivated land and wet lands by 15.57%, 15.27% for the periods 1990 – 2000 torn2000-2015 years respectively. On the other hand grasslands were decreased by 10.44% within 10 yearsrnperiod and 11.78 for the 15 year’s period. Moreover, shrub lands and forest showed a significantrndecrease through the period. i.e Shrub lands showed a higher decrease during the second period fromrn2000_2015 by -11.13% than the first period from 1990_2000 by -0.84%. The water body becamesrnincreased through the decades to promote Fincha reservoir through the tunnel for adding the efficiencyrnof Fincha hydropower. The Nash Sutcliff efficiency, coefficient of determination (R2) and RSR werernused for evaluating the model performance. The model results showed a good agreement and correlationrnwith the observed data with NSE > 0.65, R2> 0.84, and RSR < 0.6 values.rnKey words: Fincha Amerti Neshe watershed, land use change, stream flow, Rainbow, SWAT,rnERDAS Imagine.