Soil erosion problem in Ethiopian highlands has reached a stage where it is difficult to sustain the existing low and subsistence production for food and to gain foreign exchange. In response to this problem, the government has taken some measures to reduce the problem of soil erosion in some degraded highlands, including the study area. This study tries to assess the conditions and determinants of physical soil and water conservation (PSWC) practices in Kalu district using both primary and secondary data. The primary data were generated from 200 randomly selected farm households cultivating 364 farm plots. Multinomial logit model was employed to estimate determinants of the use of PSWC practices at plot level. The result of the study revealed that multiple factors such as age, education level of the farm household head, off-farm income, number of economically active members, number of plots, distance, slope, perception of severity of soil erosion, fertility, number of years in which plot was used, irrigation access and extension services and training as well as project support in SWC significantly affected farm households' use of PSWC practices.