Soil and water conservation structures (SWCS) can influence the amount of sediment yield leaving from a catchment. The extent of this influence depends heavily on hydro-climatic conditions in the upstream catchments. This study investigated on watershed management change on stream flow and sediment yield in a micro-scale catchment in the upper Blue Nile basin, where the implementation of SWC measures has been documented for the last 15 years. The implemented the temporal and spatial variability of SWC in the form of Fanya-juu terracing into the Soil and Water Assessment Tool (SWAT) was modelled to assess the impact on discharge and sediment load. Using the Sequential Uncertainty Fitting program (SUFI-2) calibrated and validated discharge and sediment load with an 11-year data set from a subcatchment (113.4ha). The performance of the model was evaluated based on performance rating criteria, graphical method and by statically method like coefficient of determination (R2), Nash Sutcliff efficiency (NSE), Percent bias (PBIAS), P- factor and R- factor. The model results have showed a good agreement and correlation with the observed data with NSE > 0.75, R2 > 0.85, and PBIAS in between -18% to 16% values. Modeling showed that the current SWC practice in the watershed reduction the surface runoff and sediment yield feasible in the catchment was 70% and 30% respectively, and total water yield by 40% reduction. Thus, by implementing SWC practices specially fanya-juu terracing practices activities there was substantial reduction of sediment yield in the watershed nearly 31 t/ha/yr. And average annual sediment load (t) in the whole watershed was 5075.91t for before SWC piracies was adopted and 1582.5t for after SWC practices was adopted.