[-hllnan actions through selliement expansion, searching of crop land and otherrndevelopment activities are altering the ecosystem of the land at unprecedented ratesrn(Walker, 2001). These interactions of Inllnan being with the natural environment havernbeen the core causes for loss offorest and land resources in the form land use/ landrncover changes since civilizations in the river valley. The current issue is that rapidrnpopulation growthfuelled with the needfor expansion of agricultural land; expansion ofrnhuman selliement and the leaningfor development activities al/ together are aggravatingrnthe land covers changes processes and switching the livelihood strategies of local people.rnThe land cover changes, which are followed by multiple of processes, have both positivernand negative impacts on the socio-economic; livelihood strategies of local people; andrnlocal environmental conditions. This research focuses on the impact of land use and landrncover changes on the socio-economic conditions and the general environment of the localrninhabitants in Menagesha Suba. This research met the multiple aims of analyzing thernland cover changes; exploring the drivers of the changes and evaluating the impacts ofrnthe changes. In doing so the research employs analysis of satellite images for the yearsrn1973, 1986 and 2007 in Menagesh Suba; key informant interviews and socio-economicrnsurvey of the livelihood strategies of the local people in the area. This research producedrna number key finding which includes a decrease in the size of the forest cover by 36.61%rnand the grazing/open land cover by 1.99%; and an increase in agricultural land byrn54.47% and the human selliement by -0.91% Fom 1973 to 2007. These increase andrndecrease in the size of the land was aggravated by a number of socio-economic andrnsocio-cultural factors both at the local and national level. This change again impactedrnthe local people in terms of their socio-economic condition and in terms their livelihoodrnstrategies. The main conclusion drawn Fom this research was land cover changes inrnA1enagesha Suba have impacted the local people in many ways but particularly in theirrnlivelihood strategies. This research argued for proper land use planning which can bernused to reduce the land cover changes in the research area.rnf(ey Words: Land Use/Land Cover Changes, Proximate and Underlying Callses;rnLivelihood Impacts of LULCC