This research investigated the extent of gully head retreat and the effectiveness of rehabilitation measures on vegetation recovery in the Debremewi watershed in Northwestern Ethiopia, a region vulnerable to severe land degradation due to gully erosion. The study aimed to quantify gully head expansion, evaluate vegetation cover dynamics using the Normalized Difference Vegetation Index (NDVI), and estimate soil loss caused by gully erosion. High-resolution imagery from Google Earth Pro was utilized to assess gully head retreat over a five-year period. Initially at 2010, 35 gullies were identified, which expanded to 38 as a result of upward movement and lateral splitting after five years from existing gullies on 2015. By 2020, interventions reduced the number of actively retreating gullies to 12. However, a slight resurgence in gully expansion was observed after 2020. Vegetation cover was analyzed using Sentinel-2A imagery over three time intervals from 2016 to 2024. Results revealed that watershed management interventions significantly enhanced vegetation cover, as indicated by increased NDVI values. Nonetheless, the termination of these interventions after 2020 led to accelerated gully formation, increased soil loss, and a decline in vegetation cover. For the past four consecutive years, the total estimated soil loss from gully erosion was approximately 70,834 tons, or 94 tons per hectare, which are 23.5 ton in per year. In conclusion, while initial interventions successfully mitigated gully expansion and promoted vegetation growth, sustainable outcomes require continued maintenance and communitybased land management. This study highlights the necessity of long-term, locally led strategies to maintain ecosystem restoration in erosion-prone areas.