Water-induced soil erosion is one of the serious environmental, agricultural, and socioeconomic problems in Ethiopian highlands. Accurate information on the rates of soil erosion helps environment protection and socio-economic development efforts of the nation. The objective of this research was to estimate annual soil loss, sediment yield, and map erosion risk areas of Gilgel Gibe-I (GG-I) catchment via integrating Revised Universal Soil Loss Equation (RULSE) model with Geographical Information System (GIS) and Remote Sensing (RS) technologies. The model inputs variables; rainfall erosivity (R), soil erodibility (K), topographic (LS), land cover (C) and land management (P) were derived from meteorological stations, Ethio-soil map, and satellite image of the catchment. The annual soil loss (t<sup>-1</sup>ha<sup>-1</sup>yr) was estimated using pixel-by-pixel ArcGIS map overlays to ensure the accuracy of RULSE output. The model output revealed on average 12.52 (t<sup>-1</sup>ha<sup>-1</sup>yr) soils was lost from GG-I catchment through sheet and rill erosion. The rates of soil loss were varying in the catchment, 59.8% of the catchment exposed to low rate (<5 t<sup>-1</sup>ha<sup>-1</sup>yr), 12.2% to moderate rate (5-12 t<sup>-1</sup>ha<sup>-1</sup>yr), 11.7% to high rate (12-30 t<sup>-1</sup>ha<sup>-1</sup>yr), and 6.6% to severe (>30 t<sup>-1</sup>ha<sup>-1</sup>yr). The annual sediment yield capacity of the catchment was 2.54 t<sup>-1</sup>ha and delivery ration estimated 0.203% transported to outlet of the catchment-GGI hydropower dam. To combat the problems of GG-I hydropower dam siltation, land degradation, and low agricultural productivity an integrated natural resource management intervention is required throughout the catchment particularly in high and severe erosion risk areas.