This study was conducted at Wallecha Watershed in the middle course of Bilate River Basin in Wolaita Zone, Southern Ethiopia with the main objective of assessing the patterns of spatial and temporal dynamics of LU/LC, their drivers and implications on SLM. The study area covered 10116ha, and had previously undergone substantial LU/LC changes. The changes in LU/LC which occurred between 1984 and 2010 were monitored by using the DPSIR framework in a context of GIS and RS. The Landsat images of 1984, 2000 and 2010 were used to produce three land cover maps of the respective years using GIS with field verification. Data collected from 145 sampled households, FGD, key informant interview and field observation were used to identify the underlying causes and in explaining LU/LC changes. Data from satellite imageries, coupled with field observation and socio-economic survey revealed an effective approach for analyzing the extent, rate, and spatial pattern of LU/LC change. Hence, the societal responses are highly encouraging but greater emphasis must be given to wise use and management practices, regulated population growth and integrated environmental rehabilitation programmes.