Abundant rainfall areas promote sediment yield at both sub-watershed and watershed scale due to soil erosion and increase siltation of river channel, but it can be curtailed through planned urbanization. The urbanization of Skudai watershed is analysed from historical and future perspective. A GIS-based model (Hydrological Simulation Programme-FORTRAN-HSPF) is used to modelled sediment flow using basin-wide simulation, and the output result is utilized in evaluating sediment yield reduction due to increased urbanization by swapping multiple temporal land-use of decadent time-steps. The analysis indicates that sediment yield reduces with increase urban built-up and decrease forest and agricultural land. An estimated 12 400 tons of sediment will be reduced for every 27% increase in built-up areas under high rainfall condition and 1 490 tons at low rainfall. The sensitivity analysis of land-use classes shows that built-up, forest and barren are more sensitive to sediment yield reduction compared to wetland and agricultural land at both high and low rainfall. The result of the study suggests that increased urbanization reduced sediment yield in proportion to the rainfall condition and can be used as an alternative approach for soil conservation at watershed scale independent of climate condition.