The objective of this study was to assess the status and challenges of wetlands management in Bule Hora Woreda so as to enhance the sustainability of the wetlands to increase the advantages of wetland beneficiaries and ecological health. Results of the study Indicates that, Bule Hora woreda has many wetlands, which they use for different purposes including for grazing, for traditional house making, for fresh water supply, for cultivation of some crops and for other purposes. However, the areal coverage, their distribution, their benefits, as well as their management practices are not studied in the Woreda. According to this study, some of the degrading factors of these wetlands include unplanned settlement, eucalyptus plantation, deforestation, agricultural practices, overgrazing and gold extraction particularly for Rophi Megada wetlands. In addition, to describe the trend of change of these wetlands Landsat TM 1986, Landsat ETM 2000 and SPOT 2006 were used to show the declining pattern of these resources. As a result degradation of these resources many local communities experienced with scarcity of some of their basic livelihood such as scarcity of fresh water supply , scarcity of some crops as well as some important edible plants like Syzygium guineense var. (Wild.) DC. (Myrtaceae), Olea europaea subsp. cuspidata (Wall. Ex G. Don) Cif., (Oleaceae) and others. Furthermore, due to the degradation of these wetlands, many wetland were disappeared. The information gathered from elders also revealed that some wildlife species such as duicker, aardvark, porcupine, bushback, Trign ( and pig are under threat due to the destruction of these Cattle Egret, Great White Egret, Hadada Ibis, Egyptian Goose, Egyptian Vultur , Abyssinian Ground Hornbill, and Laughing Dove are also disappeared from these wetlands.