Soil erosion is one of the critical problems in Ethiopia. This study was agreed out with the main objective of quantifying the state of soil erosion risk and identifying the most Hotspots areas to soil erosion in Gelda Watershed, .using the revised universal soil loss equation (RUSLE) model and multi criteria evaluation (MCE )techniques with the integration of (GIS). The data that we have used were Satellite images, rainfall data, soil data and Digital Elevation Model were collected and processed to generate the RUSLE and MCE factors. Based on RUSLE, rate of annual soil loss was 88.08 ton/ha/yr, was eroded from the total area of 46km2 annually. According to the amount of soil loss, about 0.01 % of the watershed is under the category of very severe, 1.55 % severe soil erosion risk and 6.41% in slight and 92% moderate category. Based on MCE analysis, about 4.6 % of the watersheds were highly, sensitive, 13.4 % were moderately, sensitive, and 64.9 % slightly sensitive and 17 % were not sensitive to soil erosion. As the mutual result of RUSLE and MCE indicates 0.51 % of the watershed was highly, sensitive, 6.84 % were moderately, sensitive, 80.79 % slightly, sensitive, 11.86 % were currently not sensitive to soil erosion in Gelda watershed. The overall research designated that most soil erosion source areas were found in the lower part of the catchment, demonstrating that it is important to consider the saturated and cultivated areas during design of watershed management strategies