Watershed management is the integrated use of land, vegetation and water in a geographically discrete drainage area for the benefit of its residents. For sustainable use, households’ participation in each watershed management activities is imperative. Hence, this study was designed to understand households’ participation in watershed management practices in Zema watershed, Gonji kolela district of the Amhara National Regional Sate, Ethiopia. The study employed both quantitative and qualitative approaches. Simple random sampling method was used to select two rural kebele administrations for the study. A total 181 households were sampled using proportional stratified systematic sampling techniques. Primary and secondary data sources were employed to collect the necessary data. Key informant interview, survey questionnaire and non-participant observation were the primary data collection for the study. Descriptive and inferential statistics were employed to analyze the collected data. Binary logistic regression model employed to identify variables affecting households’ participation in watershed management. The study revealed that more than 50% of the respondents participated in integrated watershed management practices, of which 96.7% were headed by men. The dominant watershed management practices in the watershed were terracing, area enclosure, soil and stone bunds respectively. Majority of households perceived that watershed management activities are important for income generation, enable better utilization of natural resources, employment opportunity and increase productivity. The binary logistic regression result indicated that agro climatic zone, farm land size, sex of household heads, training, distance of farmland from the homestead and availability of credit were determinant factors for households’ participation in watershed management. To achieve the objectives of sustainable watershed management, households’ participation with different watershed management practices should be implemented at local levels. Key Words: Households, Gonji Kolela district, participation, watershed management.