In Ethiopian highlands, gully erosion has many negative impacts on both cultivated and grazing lands. It also damages infrastructures, social and economic situations of society. Besides, sediment due to gully erosion fills reservoirs and reduce thier life time. But the contribution of gully erosion to soil loss has not been quantified yet. Therefore quantifying soil loss due to gully erosion is important. There is a scarcity of data on soil loss due to gully erosion in our country as well as in the woreda. Previous studies around the district were focused on land degradation, thus, this study attempted to address soil loss due to gully erosion through field measurement and application of GIS and remote sensing. The study is important for soil and water conservation experts, land evaluators and project coordinators to take conservation measures. This study was conducted in Abelasta watershed, Ethiopia. The aim of the study was to investigate morphological and temporal dynamics of gully erosion by using ground measurements and remote sensing. The area of Abelasta watershed is 238.04 ha that quantified gully expansion (by area and width) in 2005, 2013, 2016 and 2020. In addition, I measured gully dimensions in 2021 to determine soil loss because of gully erosion. The results showed that gullies were expanding by depth, width and length. Depending on morphology, gullies described by area, depth and length. Between 2005 and 2020 in the watershed, area covered by gullies increased from 6.24 ha to 15.01 ha, indicating that the proportion of the watershed covered by gullies was over doubled in the investigated period. based on width gullies increased from 129.71 meters to 265.13 meters, they increased from 3335.43 meters to 4247 meters by length between 2005 and 2020. From the watershed, 119.36, 141.43, 14.84, 130.09, 135.82 and 216.83 t ha −1 year −1 soil was lost at gully 1, gully 2, gully 3, gully 4, gully 5 and gully 6 respectively. The estimated total soil loss due to gully erosion in the watershed was 758.37 t ha −1 year −1 . The results showed that in Abelasta watershed gullies contributed sediment to Abay river which would further fill the Grand Rennaissance Dam of Ethiopia. So, integrated soil and water conservation and gully rehabilitation measures are required to reduce gully erosion.