The research was conducted within the Kulekhani Watershed with the objective of examining changes in Land Use Land Cover (LULC) dynamics and soil erosion across various LULC categories spanning from 2000 to 2020. The findings regarding the LULC classification in the Kulekhani Watershed revealed a steady rise in forested land, escalating from 60.72% in 2000 to 62.43% in 2010, and ultimately reaching 64.75% of the total area by 2020. The extent of water bodies exhibited a marginal increase from 1.07% in 2000 to 1.08% in 2020. Correspondingly, barren land expanded from 0.21% to 0.26%, eventually reaching 0.35% over the successive time intervals. Conversely, agricultural land dwindled over these periods, comprising 38% in 2000, 36.24% in 2010, and ultimately declining to 33.82% by 2020. The utilization of the Revised Morgan–Morgan–Finney (RMMF) model for soil loss estimation demonstrated a declining trend in weighted average soil loss during the years 2000 to 2010, followed by a slight increase between 2010 and 2020. The calculated soil loss values were recorded as 8.64 t ha–1 yr–1, 7.12 t ha–1 yr–1, and 7.30 t ha–1 yr–1 for the years 2000, 2010, and 2020 respectively. Similarly, the erosion susceptibility map illustrated a rising pattern in the very low-risk soil erosion zone from 2000 to 2020, primarily prominent within forested regions, while exhibiting a low to moderate susceptibility in agricultural zones. Moreover, barren areas displayed a moderate to high susceptibility to soil erosion. To address these concerns, future endeavors are recommended to encompass afforestation initiatives in barren regions, implement conservation farming practices in agricultural areas, and adopt appropriate measures for road stabilization.