The concentration to characterize the biophysical and socio-economic features in the integrated watersheds is to identify and prioritize production constraints for designing appropriate research and development interventions. The objective of this study was to assess the current biophysical of characteristics of Medo watershed, West Arsi Zone of Oromia, Ethiopia. To do so relevant data and tools were used; ArcGIS, Microsoft Excel sheet and fundamental formulae were applied for the analysis are some. The results of the study indicated that the major land use types in the watershed are agricultural land covering 50%, vegetation (shrubs, forests and, plantations) covering 24% and settlement covering 16% out of the total land use. Slope gradient of Medo watershed ranges from zero to more than 20 and the slope gradient of 2-5 and 5-10 cover the greatest in area coverage representing 201 ha and 170 ha respectively. We can also observe that about 8% out of the total area is subjected to severe erosion. Sandy clay loam was the dominant soil textural classes in the surface soils and Phaeozems, Retinols and Andosols are the dominant soil types, which cover 57%, 36% and 7% of the sub-watershed area for lower, middle, and upper slope positions, respectively. Mean annual rainfall of the area ranges from 960.09 mm at lower part of the watershed to the 1304.93 mm at upper part of the watershed. Accordingly, Medo sub-watershed is laid in majority of at sub humid agro ecological zone. An assessment of the trees within the landscape of watershed showed some remnant natural forests and a wide variety of shrubby vegetation is encountered at all landscapes. About 40 percent of the watershed, is under high to extremely severe soil loss values (>45 ton per hectare per year). The baseline study also identified that those natural resources degradation such as land, and or/ soil fertility, reduction, and recent changes in the areas’ weather condition in line of climate change prevailing in current years are few of the many factors that are contributing to the land and crop productivity reductions in the area. Therefore, prioritizing the identified problem and preparing intervention of different technologies and development plans to solve the problems by taking into consideration the existing opportunities of the watershed.