Soil erosion is a severe environmental problem in many parts of the world. Efforts should be concentrated to decrease hazards of high erosion rates. This requires erosion hotspot areas assessment to identify critical areas where urgent conservation needed. The revised universal soil loss equation (RUSLE) model with GIS and suspended sediment concentration measurement used to estimate the soil loss rate and to spatially identify high erosion areas in shar watershed with a size 8211 ha, Beles (main Belese) Sub Basin that is part of upper Blue Nile Basin of Ethiopia, to prioritize areas for conservation planning. Monthly precipitation, soil map, 30 m DEM (Digital Elevation model) and satellite image were used to determine the USLE (universal soil loss equation) values and combined on a cell-by-cell grid modeling procedure to predict soil loss. The total sediment yield was 41082.2 ton/year; mean annual sediment yield was 5.00 ton/ha/year. From this model, the total soil loss estimated at 92749 ton/yr. The mean annual soil loss for the watershed was 11.28 ton/ha/yr. The east, central and southwest parts of the watershed constitutes 38 % of the total area and its soil erosion estimated greater than 10 ton/ha/year. The lowest soil erosion rate (<10 ton/ha/year) was observed from 62% of the area in the southwestern, western and northwestern parts of the watershed. From digitalized gully, area 89 % found between Stream power index 2.16 to 6.15 gully and total area of 472 Ha and from sample measurement of gully average width 3 m average depth of 1.3 m which is clustered at areas of high-population, high slope, river crosses specially by cattle’s, and mining sites. RUSLE (Revised universal soil loss equation) could not locate gully hotspot area so it should be modified. The sediment delivery ratio of the watershed estimated at 44 %. The sediments transported from the watershed are already affecting reservoirs and irrigation canals in the downstream catchment of the sub basin. Using the estimated soil erosion rates, the watershed was divided into priority categories for conservation intervention. Micro watershed prone to severe soil erosion risks are Lower Tsunts (18.5 t/h/y), Right Tsunts (17.23 t/h/y), Meti and shar (14.66 t/h/y), Upper Gich mindi and Dawi (13.43 t/h/y), Upper Tsunts (10.80 t/h/y) and Endeg(10.34 t/h/y) these need immediate attention for soil conservation and watershed management planning.