In Ethiopia, to solve the land degradation problem and conserve natural resources, different soil and water conservation practices have been constructed for the last three decades since the 1970s. However, there is limited quantified information on the impacts of soil and water conservation practices on the livelihoods of rural farm households at the watershed level. Therefore, the main objective of this study was to assess the impacts of soil and water conservation practices on the livelihood of rural farm households in the Gosho watershed, Northwest Ethiopia. To achieve the stated objective, the researcher employed a cross-sectional survey research design to describe the nature of the situation, as it exists at one point in time. The study also employed both quantitative and qualitative research approaches. From the total of 458 farm households in the Gosho watershed, the researcher selected 141 sample farm households using a systematic sampling method. Also, data were collected using structured questionnaires, key informant interviews, focus group discussions, and field observations. To achieve the objective of the study, both descriptive and inferential statistics were employed. The descriptive statistics include mean and standard deviation; in addition, the inferential statistics include Pearson chi-square, Pearson correlation, analysis of variance, independent sample t-test, and multiple linear regression model. The study also used the linear standardization (min-max normalization) method to produce livelihood capital indicators with an identical range between 0-1. The study indicated that soil bund, stone bund, Fanyajuu, grass/shrub/strip, agroforestry, tree plantation (most extensively employed), compost, and liming (the least employed) were the introduced soil and water conservation practices employed in the Gosho watershed. The study also indicated that the awareness level of adopter farm households on agronomic soil and water conservation practices was very high in improving soil fertility of farmlands, increasing crop production, and improving household income. The awareness level of the adopter farm households on a combination of soil and water conservation practices in one farmland was very high in decreasing soil erosion. Finally, the awareness level of farm households on Vegetative soil and water conservation practices in increasing fodder availability and enhancing livestock productivity were also very high compared with other soil and water conservation practices. The study also revealed that the natural, physical, human, financial, and social livelihood capital index of non-adopter and adopter farm households were 0.29, 0.37, 0.10, 0.16, 0.85, and 0. 57, 0.80, 0.74, 0.70, 1, respectively. The overall household livelihood index for non-adopter and adopter farm households was 0.35 and 0.76, respectively. Therefore, the study concluded the introduce SWC practices brings a statistically significant change in household livelihood improvements compared with the indigenous soil and water conservation practices in the Gosho watershed northwest Ethiopia. Finally, concerned bodies should support the non-adopter farm households to implement the introduced soil and water conservation practices on farmlands to improve their livelihood. Keywords: Adoption; Livelihood; Livelihood capital; Farm Household; Gosho watershed