Soil erosion by water is a serious problem in Ethiopia, contributing to diminishing crop yields and food shortages. Apart from understanding the magnitude, risk, and spatial distribution of the problem, identifying erosion hotspot areas is essential for effectively reversing the problem. This study aims to identify erosion hotspots in the Gotu watershed, in northeastern Ethiopia, using the revised universal soil loss equation (RUSLE) and incorporating local farmers' perspectives to prioritize conservation efforts. The RUSLE model reveals that 29,744.3 metric tons of soil is lost annually from the Gotu watershed, with an average loss of 65.3 to t ha⁻1year⁻1. The main contributing factors to soil erosion in the watershed include undulating topography, loss of plant cover, and continuous cultivation. The highest soil loss rates (> 80 t ha⁻1year⁻1) were found in the western, northern, and southern parts of the watershed, where cultivation occurs on moderate to steep slopes with sparse vegetation cover. These areas should be prioritized for conservation interventions. Farmers identified poor crop yields and damaged conservation structures as key indicators of soil erosion prevalence in the watershed. Increasing farmer's understanding of soil erosion and the importance of soil and water conservation is essential for effectively controlling soil erosion and improving food security in the area.