Watershed ecosystems are important for the provision of multiple ecosystem services (ES) that are critical to human welfare. Few studies particularly in the tropics assess the multiple ecosystem services, economic value, and effect of land use change on economic value. This paper provides evidence of the quantitative. economic value and effect of land use change on the economic value of watershed ESs from Barekese and Owabi in Ghana. Geospatial analysis and the stated preference method were used for the study. Primary and secondary data were collected from households, institutions, and other sources to quantify and estimate ecosystem services. The geospatial analysis showed that forest degradation and deforestation have increased over the last three decades in the watershed with settlements and cropland being the major land use changes. The two watersheds provide many ecosystem services, including provisioning services (water, fuelwood, bushmeat, fish), regulating services (carbon sequestration, water supply, water purification, soil fertility), and cultural services (ecotourism). An aggregated economic value for the ESs of GH₵ 707.701 x 106 ($144.428 x 106) was estimated for the two watersheds. For the different sites, the economic value for the Barekese and Owabi watersheds were $110.645 x 106 ($6609.06/ha/yr) and $33.783 x 106 ($5857.76/ha/yr) respectively. Our analysis showed that conversion of forest to other land uses resulted in a significant reduction in the value of ecosystem services. Conversion of the watershed to Tree Crop, Food Crop, Grassland or Settlement could reduce the economic value of ESs by 4%–80 %. The study demonstrates that ecosystem services assessment could provide important information for conservation and development policies related to watershed management in the tropics. To ensure ecosystem service supply, the risks of land use change should be considered in watershed conservation strategies including land use zoning and adaptive management systems.