Egypt is almost totally dependent on the River Nile for satisfying about 95% of its water requirements. The River Nile has three main tributaries: White Nile, Blue Nile, and River Atbara. The Blue Nile contributes about 60% of total annual flow reached the River Nile at Aswan High Dam. The goal of this research is to develop a reliable stochastic model for the monthly streamflow of the Blue Nile at Eldiem station, where the Grand Ethiopian Renaissance Dam (GERD) is currently under construction with a storage capacity of about 74 billion m3. The developed model may help to carry out a reliable study on the filling scenarios of GERD reservoir and to minimize its expected negative side effects on Sudan and Egypt. The linear models: Deseasonalized AutoRegressive Moving Average (DARMA) model, Periodic AutoRegressive Moving Average (PARMA) model and Seasonal AutoRegressive Integrated Moving Average (SARIMA) model; and the nonlinear Artificial Neural Network (ANN) model are selected for modeling monthly streamflow at Eldiem station. The performance of various models during calibration and validation were evaluated using the statistical indices: Mean Absolute Error, Root Mean Square Error and coefficient of determination (R2) which indicate the strength of fitting between observed and forecasted values. The results show that the performance of the nonlinear model (ANN) was much better than all investigated linear models (DARMA, PARMA and SARIMA) in forecasting the monthly flow discharges at Eldiem station.