The main purpose of the study was to investigate the ecological status, ecosystem services (ESs) with their relative importance, and the local communities’ perception of the management of Washa and Borale artificial wetlands located in the Semiarid Ethiopian Highlands. The results revealed that many of the communities relied mainly on farming and livestock rearing with small land size (≤ 1 ha) and large family size. Grass harvesting, free grazing, farming, wetland conversion, and water extraction were the main anthropogenic factors causing the wetlands’ ecological disturbance. The ecological status of Washa and Borale wetlands were thus moderately (67) and highly degraded (80), respectively. Yet, the various ESs categorized as provisioning, regulating, cultural, and supporting services, were still delivered from both sites. Vegetables (carrots, potatoes, garlic), crops (barley, beans), grass, water, and crafting materials were the products obtained from the wetlands. Some educational, research, and recreational services were also delivered mainly from the Washa site. Still, erosion, flooding, carbon regulation, and biota (plants, birds, fish) supporting services were provided at both sites. Yet, many of the ESs provided had low and medium importance due to the wetlands’ impairedness. Yet, the water and food delivered from the wetlands had high and even higher importance than the other services due to their being designed for providing water mainly for irrigation and livestock watering. Still, Washa provided higher cultural, regulating, and supporting services than the Borale’s owing to its being moderately impaired and lesser buffer and catchment area disturbance. Overall, many of the ESs delivered had low and medium importance because of the wetlands’ biodiversity loss, ecological degradation, and water reduction chiefly in the dry season. Yet, the people had good perceptions of the wetlands’ management. Hence, for the wetlands’ restoration, urgent action is required via developing a management plan.