Soil erosion reduces not only soil productivity of the area but also reservoir capacity. Therninformation on sources of sediment yield within a catchment can be used as a perspective on thernrate of soil erosion occurring within that catchment. The objective of this study was to model andrnanalyze the potential soil erosion of the catchment, to estimate the sediment yield of thernwatershed, and recommend appropriate soil and water conservation measures regarded as thernbest management activities of the watershed. A SWAT 2012 (Soil and Water Assessment Tool)rnmodel was selected for the simulation of the soil erosion and sediment yield of Kesem watershedrnwhich is located in Middle Awash sub basin, Ethiopia. Model calibration and validation wererndone after checking the performance of sensitive analysis. Twenty one parameters werernidentified for flow calibration and of which the Initial Soil Conservation Service (SCS) runoffrncurve number for moisture condition II (CN2) was the most sensitive one and twelve parametersrnwere selected for sediment calibration of which an effective hydraulic conductivity (CH_K2)rnwas the most sensitive for sediment. During flow calibration the R2 and NS give as value of 0.68rnand 0.67 respectively, and similarly for validation the R2 and NS give as value of 0.65 and 0.60,rnrespectively. For sediment calibration the R2 and NS coefficient give as 0.77 and 0.64,rnrespectively and sediment validation R2 and NS give as 0.65 and 0.54, respectively. Therncalibration and validation results found were good and satisfactory for both flow and sediment.rnThe total observed flow for study area at gauged station was 15.52m3/s and the simulated flowrnby SWAT model was 14.15m3/s and observed annual sediment yield generated from rating curvernat selected gauging station was found 29.62ton/ha/yr and the simulated yield by SWAT modelrnwas 25.75ton/ha/yr. From the model simulated output, sub-basins 2, 7, 5, and 18 were found tornbe the severely eroded sub-basins with annual average sediment yield of 22.01t/ha, 19.29t/ha,rn19.09t/ha and 18.93t/ha, respectively. While, sub-basins 12 and 13 were found to be the leastrnsediment sources with annual average sediment yield of 0.03 t/ha and 0.06t/ha respectively. Sixrnscenarios were developed to decrease sediment yield in the catchment and sediment managementrnapproach were proposed in the Kesem catchment.