Soil and Water conservation practices are widely practiced in Akusti Micro Watershed (AWW). The main purpose of this study was to assess the effect of soil and water conservation practices (SWCP) on selected biophysical, livelihood attributes and farmers perception at AMW, north western Ethiopia. Loss of soil from gully erosion was measured by using meter .The increment of the present yield was evaluated by using the quadrant measurement 1m×1m (1m²) method. Yield before construction of SWCP by using questioner. Field survey using questioner was conducted to assess the perceptions of farmers about SWCP. The result indicated that about 168.5 ha of land is covered by vegetation. But the total amount of soil loss in gully erosion from the study area is 50.44t/ha .The study also showed that after construction of SWCP crop yields are increasing although the increment differs from farmer to farmer as the management of soil by different farmers is not the same. Farmer’s responsed yield before construction of SWCP teff (local seed) was 460 kg/ha, wheat (danifei) 240 kg/ha, maize 400kg/ha and potato 500kg/ha. After construction of soil and water conservation measure yield of tef (local seed) 6800 kg/ha, wheat (danifei) 3500 kg/ha, Maize12000 kg/ha and Potato 16000 kg/ha. According to survey results, 84.2% of the respondents have land restoration practices and the remaining 15.8% have no land restoration practices. Farmer’s who perceive SWCP more effective in controlling soil erosion and ensuring sustainability of yield make decision to adopt modern conservation methods. In Akusti micro watershed lands are sloppy, soil loss due to soil erosion is very high; it removes all the top fertile soils, applied fertilizers and sown seeds. Farmers are remaining with no or very low harvest when cultivating these vulnerable lands without proper management. It is necessary to give attention improving the productivity of land, which is prone to soil erosion, without soil conservation is impossible. Government, district agricultural officialsand DAs are recommend in integrating the promotion of yield enhancing inputs together with conservation activities and take the measure for every problem farmers face. They have to introduce and train farmers use technologies that does not only reduce soil erosion but also substantially improve agricultural yields. Key Words: Perception, Restoration, Soil erosion, Soil and water conservation