The study was conducted in the Banja district of the Amhara region. The main objective of the study was critically evaluating the status, limitations, and alternative land use type as well as its benefits. To realize the objectives, data were collected from 134 sample respondents using questionnaires, focus group discussion with farmers and experts as well as field surveying. Data were analyzed using descriptive and inferential statistics with binary logic models, and designing selection criteria and frameworks. The finding of the research indicates that more land was prepared or decided for annual crop production with tedious mitigation measures while about less than 15% of prepared land was employed due to its preferability, frightens on the obligatory direction of land use plan certificate and presence of irrigation access on some farmers. However fragile and chaotic procedures of land use plan preparation, holding of the land through contractual agreement, poor perception of landholder regarding prepared land use plan and on its labor intensiveness as well as unsuitability of the plan with agro-ecological and landform of the study area affected the application of the prepared land-use plan. Besides landowners, farmland size and landform are the most restriction factor for plan implementation while irrigation access distance of farmland from the homestead and marital status are insignificant factors within the study area. Moreover, above 85.4% of the land was covered and applied by community land-use type due to the success of improving soil fertility, including other selection criteria. However, improving procedural framework, legalizing actual community land-use type and its benefit, and stewardship community technical committee and accessibility of sustainable market regarding the product of community trend land-use type should be further collaborated within the study area to achieve sustainable land management. Keywords: status and constraint, prepared land-use type, community land-use type.