Analysis of land use and land cover (LULC) change and its drivers and impacts in the biodiversity hotspot of Bale Mountain's socio-ecological system is crucial for formulating plausible policies and strategies that can enhance sustainable development. The study aimed to analyze spatio-temporal LULC changes and their trends, extents, drives, and impacts over the last 48 years in the Bale Mountain social-ecological system. Landsat imagery data from the years 1973, 1986, 1996, 2014, and 2021 together with qualitative data were used. LULC classification scheme employed a supervised classification method with the application of the maximum likelihood algorithm technique. In the period between 1973 and 2021, agriculture, bare land, and settlement showed areal increment by 153.13%, 295.57%, and 49.03% with the corresponding increased annual rate of 1.93%, 2.86%, and 0.83%, respectively. On the contrary, forest, wood land, bushland, grass land, and water body decreased by 29.97%, 1.36%, 28.16%, 8.63%, and 84.36% during the study period, respectively. During the period, major LULC change dynamics were also observed; the majority of woodland was converted to agriculture (757.8 km2) and grassland (531.3 km2); and forests were converted to other LULC classes, namely woodland (766.5 km2), agriculture (706.1 km2), grassland (34.6 km2), bushland (31.9 km2), settlement (20.5 km2), and bare land (14.3 km2). LULC changes were caused by the expansion of agriculture, settlement, overgrazing, infrastructure development, and fire that were driven by population growth and climate change, and supplemented by inadequate policy and institutional factors. Social and environmental importance and values of land uses and land covers in the study area necessitate further assessment of potential natural resources' user groups and valuation of ecosystem services in the study area. Hence, we suggest the identification of potential natural resource-based user groups, and assessment of the influence of LULC changes on ecosystem services in Bale Mountains Eco Region (BMER) for the sustainable use and managements of land resources.