This study focuses on impact of municipal solid waste leachate on the quality of soil at the Welaita Sodo Town municipal solid waste (MSW) dumpsite. Six soil and six leachate/wastewater samples were collected from six different locations within the dump site and out of the dumpsite. Samples were analyzed for the concentration of parameters such pH, EC, calcium, magnesium, sodium, potassium, sulphate, nitrate, nitrate-nitrogen, ammonia-nitrogen, ammonia and selected heavy metals such as copper, iron, lead, manganese, chromium, cadmium and zinc. The result showed that the mean soil concentration of pH, Ca, Na, K, were 7.05, 1179.8mg/kg, 2011.22mg/kg, 178mg/kg and 8.48mg/kg, 2011.22mg/kg, 246.99mg/kg, 231.56mg/kg in the control site and dump site respectively and heavy metal concentration of Cu, Zn, Mn, Pb were 19.2mg/kg, 98.5mg/kg, 22.8mg/kg, 63.1mg/kg and 33.9mg/kg, 365.5mg/kg, 176.6mg/kg, 114.3mg/kg in the control site and dump site respectively and also the leachate/wastewater concentration of sulphate, nitrate, ammonia were 106.35mg/l, 43.2mg/l, 1.4mg/l, and 158.3mg/l, 96.2mg/l, 6.42mg/l, in the control site and dump site respectively and heavy metal concentration of Cr, Cd, Pb, Mn, Zn, Fe were 0.006mg/l, 0.045mg/l, 0.24mg/l, 0.035mg/l, 0.036mg/l, 9.15mg/l and 0.35mg/l, 1.45mg/l, 1.75mg/l, 12.2mg/l, 2mg/l, 29mg/l in the control site and dump site respectively. The concentrations of each parameter (except K and Na in the soil and EC and Na in leachate samples) among the selected sites were significantly different (ANOVA, p≤0.05). Most of the parameters analyzed indicated pollution and were above the World health organization and Food and Agricultural Organization (FAO) permissible limits. The result indicated that higher concentrations of heavy metals and other soil quality parameters occurred in the dumpsite soils compared to the control site and this may be due to the ability of the soil strata to absorb the contaminants caused by the dump site leachate. This study confirms that continuous application dumping of all categories of solid waste on land without proper pollution control method resulted in accumulation of nutrients, metals in receiving soils and release of leachate to the soil which further enters the food chain. In the long term it is expected to create a potential food hazard and hence it is recommended that a modern sanitary landfill will be design and constructed with facilities to monitor the soil, ground water contamination, besides remedial measures be undertaken immediately to clean up the existing area using appropriate remediation technologies.