Sedimentation of reservoirs is a critical problem that jeopardizes service life of hydraulic structuresrnby reducing their active storage capacity. This investigation is intended to estimate sediment yieldrnof Gololcha dam watershed, Wabe shebelle River basin, Ethiopia and to detect the sub basins thatrnare under severe sediment load and developing scenarios as intervention measures in reducing thisrnyield from catchment. The soil and water assessment tool is used in simulating Gololcha watershedrnhaving catchment area of 841.463Kmrn. The model calibration and validation for flow and sedimentrnis done through isolating sensitive parameter. Slope length for lateral subsurface flow (SLSOIL)rnwas one of the sensitive parameter for flow and SCS runoff curve number (CN2) for sediment. rn2rnThe model evaluation result showed that determination coefficient of 0.74, Nash-Sutcliffe of 0.73,rnbias percentage of -9.1 for calibration of flow and determination coefficient of 0.61, Nash-Sutcliffernof 0.6, bias percentage of -2.5 for validation of flow. For sediment calibration and validation, thernresult obtained with determination coefficient of 0.79, Nash-Sutcliffe of 0.77, bias percentage ofrn0.7 and determination coefficient of 0.78, Nash-Sutcliffe of 0.52, bias percentage of 10.1,rnrespectively. Thus, the model found to be good in simulating the flow and sediment for the studyrnarea. The estimated result indicated that the average annual sediment load at the dam site wasrn234,768 ton/yr. In this finding Spatial difference of sediment yield for Gololcha watershedrndisclosed that sub basins 2,3,4,5 and 14 are the critical sub basins generating mean annual sedimentrnload varying from 5.48 ton/ha to 16.22 ton/ha. rnDifferent Scenarios developed through land use refinement and operation management for therncritical sub basins identified for sediment reduction from the catchment. High amount of sedimentrnreduction observed when rnintensively cultivated rnland changed to rnforest rnmixed. In addition to this, the combination of contouring and terracing showed more effectivernmanagement practices than when they are practiced separately.