This study was aimed at examining land cover changes for the last 35 years and its causative factors in Gilgel Abbay watershed by using GIS and remote sensing, survey and population data. The land use and cover changes study will help to apply the appropriate land use. The land cover/use status for the years 1973, 1986, 1995 and 2008 were exam-ined using land sat images. The changes in different land cover units such as forest, wood and bush lands, grass, wet-lands and water bod ies, and farm and settlements were analyzed. Population change, tenure, poverty and lack of market and credit facilities in the watershed area were analyzed as causes of land cover changes. The results of the study have shown that during the last 35 years forest, grass lands, wetlands and lake areas were converted to farm and settlement areas. There was rapid increase of population with growth rates of 4.9% and 3.5% (1984-1994 and 1994-2007), respec-tively per annum which caused more land cover changes.