Land use/cover change dynamics influences many aspects of the natural environment. It’s shifting patterns as a component of many existing climate change problems has been gaining recognition as key cause and consequences of environmental problems and livelihood changes. This research was conducted in Amhara region located in the south Gondar zone specifically in Farta district to investigate the land use/cover changes between the years 1989-2019 and to assess the economic advantage of Eucalyptus globulus based land use in contrast to cropland and grazing land uses. In this study, both primary and secondary data collection methods were used. GPS was used for collecting ground control points, ArcGIS 10.3.1 for spatial analysis and mapping, ERDAS Imagine 2010 for land use classification and change detection, Satellite images of Landsat 8 for OLI 2019 and Landsat 5 TM for 1989 and 1999 Landsat 7 ETM 2009 were used to generate land use/cover maps by using Supervised Classification technique with Maximum Likelihood classifier. Total of 60 samples (20 cropland, 20 grazing land and 20 Eucalyptus globulus land) were taken to estimate the amount of production. The production amount of each land use was converted into Birr value for comparison purpose. The land use and land cover change study result showed that forest ,grazing, wetland and bare lands were declining by 6.71%, 3.68%, 1.98% &3.32%, respectively from1989-2019 years. Whereas plantation, cultivated land, water body, and settlement lands were expanding by 6.82%, 4.44%, 0.18% & 4.24%, respectively from1989-2019 years. From the observed changes plantation was the most increased land use/cover type by 6.82% (5663.3ha). The overall classification accuracies of this study for 1989, 1999, 2009 and 2019 were found to be 85.3%, 85.1%, 85.3%& 85.5%respectively. Total productivity and economic benefits of the three land use types (Eucalyptus globulus based land use, grazing land use and cropland use mainly cropped by wheat) were compared. The net benefit gained from Eucalyptus globulus based land was found to be higher and it gives extra 86,244ETBha-1yr-1to cropping & 106,158ETBha-1yr-1 compared to grazing lands .Therefore, Eucalyptus globulus significantly increase income 4.1% and14.57% fold greater than crop and grazing land system respectively. Based on land equivalent ratio value Eucalyptus globulus based land was 301% better than crop land use system. . Out of this study, it is concluded that Eucalyptus globulus production with in a five-year rotation time could benefit farmers in huge incomes. Keywords Eucalyptus globulus, land use change, wheat, Eucalyptus, pasture land use system