The change in Land use and land cover had changed ecosystems more quickly and extensively than in any comparable period of time. Land used land cover (LULC) change is one of the main factor that affect watershed response in the northern Ethiopia. The impact of LULC change on streamflow of Azuari watershed 202 km 2 carried out using the Soil and Water Assessment Tool (SWAT). The objective of this study is to assess the impact of land use and land cover dynamics on streamflow of Azuari watershed. The LULC change analysis was performed using supervised classification method in ArcGIS10.3 platform. The SWAT model was calibrated and validated for the most sensitive parameters for the streamflow in the Azuari watershed. The study result showed that the watershed experienced significant LULC changes from 1985 to 2020. During the study period:- major part of the grass land, forest land and shrub land were changed to cultivated land and bare Land. The LULC map analysis showed that cultivated land area and bare land increased by 15.6% & 15.17% and shrub land, forest land and grass land decreased by 8.75%, 8.21% and 13.82% respectively over the last 36 years (1985 – 2020). The SWAT model was calibrated for period 1990 to 1999 and validated for the period 2000 to 2004. The SWAT model was calibrated and validated for the most sensitive parameters. The result showed that there was a good agreement between observed and simulated streamflow with coefficient of determination (R 2 ) and Nash-Sutcliff efficiency values of 0.87 and 0.85 for calibration, and 0.8 and 0.75 for validation periods respectively. The evaluation of the SWAT hydrologic response unit (HRU) due to LULC change between the years 1990 and 2004 showed that monthly streamflow was increased by 2 m 3 /s in wet months and decreased by 0.7 m 3 /s in dry months during period of 1990 to 2004. Understanding the effect of LULC change on streamflow is crucial for knowledge based decision making in the development of water resources projects.