This study was carried out to determine the potential impact of municipal solid waste in Bahir Dar city. The disposal of municipal solid waste in an open dumpsite in Bahir Dar has an environmental impact in terms of greenhouse gas emissions, eutrophication, and leachate. The quantity of greenhouse gases emitted from the open dumpsite of Bahir Dar city was determined by using IPCC default method. Currently around 148 tons/day waste is generated from Bahir Dar city and from these waste 58% of the waste is disposed into open dump site. From the waste disposal site 46Gg/year of greenhouse gas is emitted. The molecular formula that was determined from organic waste of the city is C24H36O13N. By using this molecular formula of the organic waste, the theoretical oxygen demand becomes 38.75 and then the eutrophication potential of organic waste generated from Bahirdar city was 0.0594 Kg N-equivalent or 59.4g N-equivalent. The average annual leachate resulting from the waste reaches 1,112mm per day. Bahir Dar city should start to implement 3R (Reduction, Reuse and Recycling) solid waste management options in order to reduce potential environmental impacts. For more investigation quantification of the other impacts associated with municipal solid waste is recommended.