Rapid increases in population, forest clearing and continuing search for a farm land have induced pressure on natural resource. In order to reverse such kind of problem assessing the level of problem and finding solution at watershed level is necessary. The studies of land use land cover changes and their effects on soil erosion and runoff patterns at the watershed level are essential in water resource planning and management. This study provides an approach to identify the effects of land use land cover changes on runoff and sediment in Tikur wuha watershed. The changes in land use land cover were associated with growing demand of wood for fire, charcoal, construction materials, household furniture, pulp and paper industries, and expansion of farming and grazing land. The study was conducted the impacts of land use land cover changes, to identify the main cause erosion, to assess soil loss rate in different slope classes, agricultural activities and its effect on land resource by using erosion assessment model. USLE is important to predict the annual soil loss by using different parameters. The necessary data were generated from mean annual rainfall, previous study of the area, erosivity factor, erodibilty factor, topographic factor (LS), the cropping management factor, erosion control factor, both primary and secondary data as well as key informants interview, field observation, by distribution of structural survey questionnaire and field measurement. The result of the analysis showed that the amount of soil loss at Tikur wuha watershed is about 5.58 ton/ ha/yr. The study finding suggest that understanding of some of the socio- economic, institutional and biophysical factors that determine land cover change of the area would contribute to advice appropriate strategies to achieve the desired change in SWC process and to alleviate damage land cover change in the study area. In selecting priority intervention areas in the rehabilitation of land use land cover, strategies should considered the socio-economic and specific land characteristics as well as farmers preference.