Soil degradation is wide spread and serious throughout the Ethiopian Highlands. It is also a major watershed problem in many developing countries causing significant loss of soil fertility, loss of productivity and environmental degradation.This research has, therefore, been carried out to evaluate the soil erosion risk and quantify the major land use landcover changes over the past 24 years (1986-2010) in the Geffersawatershed. The research integrates the Revised Universal Soil Loss Equation (RUSLE) with a Geographic Information System (GIS) and Remote Sensing(RS) to quantify the potential soil erosion risk and land use land cover changes. Rainfall data, soil data, DEM data and satellite image were used as input data sets to generate RUSLE factor values. Raster calculator was used to interactively calculate potential soil loss and prepare soil erosion risk map. For the land use land cover change calculation two satellite images (Landsat TM 1986 and Landsat ETM+2010) has been utilized. As a result the potential soil erosion risk and land use land cover map of 1986 and 2010 of the study area was generated. The result showed that the potential annual soil loss of the watershed ranges from 0.01to 300 ton/ha/yr. and the mean annual soil loss rate is 45.7ton/ha/yr.Concerning the land use land cover change Grass land decline from (30.81%) to (21.4%), open forest changes from (36.37%) to (16.66%) and bush and shrub land changes from (2.36%) to (1.25%). On the contraryfarm land changes from (26.52%)to(53.62%), dense forest increase from (2.1%)to (4.62%) and water body changes from (1.84%)to(2.45%). Key Words: Soil erosion Risk, GIS, Remote Sensing, RUSLE, Land use Land cover