Forest cover change analysis between 1973 and 2003 was conducted in Banja Woreda. Awi zone, ~mhara region using remote sensing and geographic information system (GIS) supported with field verifications. Information was extracted from various Satellite images and different digital maps. Tho objectives of this study were to detect tho extent and rate of forest cover cl1ange over the last 30 years. Three dates of Landsat image data of Ille 1973, 1986 era 2003 were used to produce land cover map in general and forest cover ma'J;i in particular. NOVI image differencing and post-classification comparison change detection methods were employed. In addition to this, household levels of socioeconomic data were used in explaining the causes of forest cover changes in the study area . • ' Abstract The results show that during the last 30 years, forest cover declined from 6044 ha in 1973 to 2855.9 ha in 7986 and 2446.9 ha in the year 2003. The annual rate of forest cover change between 1973 and 2003 was 120 ha/year. The socio-economic factors like population growth, me demand for the expansion of agricuftural land, fuel wood and construction materials were the major driving forces for the observed forest cover changes. Therefore, in order to reduce the problem of forest cover change, remedial points have been recommended.