Soil degradation affects its quality and productivity of the land. To control soil degradation, various soil and water conservation (SWC) measures, including area closure are implemented. Understanding the impacts of SWC measures could support planning and implementation of land management practices. This study aimed to investigate impacts of area closure on soil properties in south central highland of Ethiopia. To acquire the necessary data, we conducted interviews with 80 households. Furthermore, nine years old area closure with physical soil and water conservation (AC-SWC), open grazing with physical SWC (OG-SWC), and open grazing without physical SWC (OG) were identified and each divided into upper, middle, and lower slope positions. In each slope position, 3 sample plots were established at 25–50 m intervals. A total of 27 composite samples and other 27 core samples for bulk density (3 treatments∗3 slope position∗3 replications) were collected and analyzed for soil properties. The data were analyzed using descriptive statistics and one-way ANOVA. The results showed that about 98 % of the respondents perceived that area closure would be an effective way to restore degraded land. Majority of the farmers (86 %) believed that area closure could reduce soil erosion and replenish soil fertility and thus, is beneficial in improving land productivity. Soil test results revealed that AC-SWC had significantly greater (P < 0.05) clay fractions, pH, available potassium, and available phosphorus than OG-SWC and OG. Variations of soil organic carbon (SOC) and total nitrogen (TN) were more pronounced. The SOC in AC-SWC was 83 % and 314 % greater than OG-SWC and OG, respectively. In the AC-SWC, TN was three and seven times higher than that of OG-SWC and OG, respectively. This could be due to vegetation restoration that reduces erosion, and enhances organic matter, moisture, and nutrient. The SOC, TN, pH, available potassium, and clay were significantly greater (P < 0.05) at lower slope position than upper in all forms of land management, which could be due to deposition at downslope. About 12 % and 11 % variations of clay fractions and SOC were, respectively, observed in between upper and lower slope positions at AC-SWC, but they varied by 25 % and 57 %, respectively, in OG. These imply area closure has had a beneficial effect on soil properties even on sloping land. AC-SWC is an important option to integrate in land management for rehabilitation of degraded soil.