ABSTRACTMultiple disturbed and undisturbed soil samples were collected to assess the soil structure health in support of water use and management in a subtropical watershed, which is composed of shallow Entisols, near to Canguçu, RS state—Brazil. Various physico‐hydraulic properties related to soil structure, such as bulk density, total, micro and macroporosity, saturated hydraulic conductivity, organic carbon, soil water retention curve (SWRC), and the ranges of plant available water (PAWC) and drainable porosity (DP) were measured to be analyzed. The hydraulic‐energy indices of soil aeration and water retention were determined by integrating the areas under SWRC. Combining these properties with the contents of sand and clay, a unique blanket soil physico‐hydraulic health index (BSPHI) was formulated and applied to investigate the impact of land use and management on the soils of the Ellert Creek Watershed (ECW), thereby supporting soil physical health analysis and, consequently, the analysis of water and human health. The favorable outcomes found in the ECW soils under annual crops indicated good root aeration in the surface layer due to the balance between DP and PAWC. The BSPHI results showed that only about 19% of the areas exhibited unhealthy physical health. The soil structure in pasture areas of ECW was not significantly impacted by the extensive cattle grazing, whereas lands under native forest served as a control for the natural soil quality status. The BSPHI successfully captured small changes in soil structure, regardless of land use and management, highlighting its potential as a promising tool for evaluating soil health by assessing the soil physical quality.