The thesis presents analysis of the environmental impact of Augusta quarry on land stability, adjacent surface water and local resident. In addition potential rehabilitation of the abandoned quarry is discussed. The study area is located in Addis Ababa (Ethiopia), the most important production center of crushed aggregate. An intensive field survey was made in order to characterize the rock mass of the quarry slope stability. This was accomplished by classification of the area through visual interpretation. Eight slope section sites were selected and discontinuity of the rock mass was measured with Burton compass. In addition, questioners were prepared both close and open ended type to deal the impact of quarry on resident; more over water samples were taken upstream of the quarry, with in the quarry and down stream of the quarry to analyses the impact and its beneficial use for the rehabilitation of the quarry. The land stability analysis result indicates the slope is unstable. The questioner survey analyzed through frequency percentage and shows the impact becomes maximum during is blasting operation. The turbidity within the quarry indicates lower than the upstream of the quarry, this is because currently blasting operation is inactive since one year, resulting the total solid and total dissolved solid higher than the upstream surface water. The quality of the water for the beneficial use of rehabilitation is analyzed based on its sodium percentage and sodium absorption ratio. The value of sodium absorption ratio is found to be low. Through the value of sodium percentage is in doubtful range. Finally potential rehabilitation techniques discussed based on the result obtained from land stability analysis, field survey and literatures