ABSTRACT The study presents on the application of hydrological watershed models in the Blue Nile basin to evaluate the sediment prediction capability of SWAT and PED-WM in the range of scale of watershed. Watersheds were AnditTid (4.84km2),Temcha (410.09km2) and Gumara(1270.75km2). Calibration and validation was carried out for both stream flow and sediment load at the outlet, for sixteen years measured data 2000 to 2015considering the warm-up, calibration and validation(2000, 2001-2010&2011-2015) respectively. Good agreement between measured and simulated flow and sediment load were observed, which was verified using both graphical technique and quantitative statistics. Model efficiency criteria for SWAT model stream flow; the calibration of AnditTid, Temcha and Gumara SWAT(NSE=0.70,0.62,0.64)and(NSE=0.91,0.75,0.89)andvalidation(NSE=0.84,0.65,0.68) and(NSE=0.89,0.93,0.71) the daily and monthly time. Similarly; PED-WM for Gumara (NSE=0.74,0.58,0.80)and(NSE=0.90,0.80,0.91)andvalidation(NSE=0.85,0.51,0.83)and(N SE=0.94,0.57&0.94) in the daily and monthly time respectively. Similarly; SWAT model sediment load calibration in AnditTid, Temcha and Gumara (NSE=0.68, 0.56, 0.63) and (NSE=0.88, 0.65,0.78) and validation of the SWAT model (NSE=0.77,0.72,0.73) and (NSE=0.92,0.86,0.85) in daily and monthly respectively. PED-WM sediment calibration in AnditTid, Temcha and Gumara (NSE=0.73,0.75,0.81) and (NSE=0.90,0.82,0.83) and validation (NSE=0.75,0.65,0.91)and(NSE=0.92,0.80,0.90) in the daily and monthly time respectively. Difference in model behavior depends on runoff mechanism. SWAT model the main direct runoff generation process is infiltration excess and could predict better monthly discharge and sediment load than daily time step. In case of PED-WM saturation excess is the main direct runoff process and could predict the maximum extent of runoff generation area 6% (5% saturated and1% degraded). Generally, the output of this study it will support planners and decision makers to take relevant soil and water conservation measures and diminish the frightening soil loss and land degradation troubles in the Blue Nile Basin, Ethiopia. KEYWORDS: Hydrological Model, Blue Nile basin, Sediment Yield, SWAT & PED-W