This study examines the sediment retention in Wadi Baysh using the Revised Universal Soil Loss Equation (RUSLE) and TerrSet models, accompanied by integrated remote sensing and Geographic Information System (GIS) techniques. The contribution of this study is mainly associated with the application of TerrSet integrated with high resolution datasets to precisely estimate sediments load, which provide useful information to operate dams and improve the operational efficiency of dams. The Advanced Land Observing Satellite (ALOS) Phased Array type L-band Synthetic Aperture Radar (PALSAR) data are utilized to delineate the basin and have been used as an input to the TerrSet model. The rainfall erosivity (R factor) was calculated using the Climate Hazards Center Infrared Precipitation with Stations (CHIRPS) in the research area during 2015–2020. The soil erodibility (K factor) and LULC categorization are calculated using the digital soil map of the world (DSMW) and Sentinel-2 datasets, respectively. The R factor calculated for Wadi Baysh ranges between 91.35 and 115.95 MJ mm/ha/h/year, while the estimated K factor ranges from 0.139 to 0.151 t ha h/ha M. The Support Vector Machine (SVM) method categorized LULC of the study area into four major classes including barren land (81% of the total area), built-up area (11%), vegetation (8%), and water bodies (1%). Results from the sediment retention module (TerrSet) indicated that each year, 57.91 million tons of soil loss occurred in the basin. The data show that soil loss is greater in the northeast and south, whereas it is typical in the middle of Wadi Baysh. It is concluded from the current analyses that the dam lake of Wadi Baysh, located downstream, will be filled soon in the coming few years if sediment loads are carried to the lake at the same rate. Surface dam operators can obtain a full understanding of sedimentation and take proactive measures to reduce its influence on dam operations by leveraging TerrSet’s sophisticated capabilities.