Identifying the causes and drivers of land change is one of the main objectives of the land use and cover change investigation. Land use and cover change data are crucial for managing water resources and land preservation. This study examined the trends, driving factors, and implications of land use and land cover dynamics in contrasting agro-ecologies to provide empirical evidence about increases and losses in land use classes. Landsat images of MSS (1976), TM (1991 and 2001), ETM+ (2011), and OLI (2022) were used to study LULC dynamics. To identify the potential driving forces and impacts, field observations, discussions with key informants, analysis of land use policy, and focus group discussions (FGDs) were undertaken. The analysis of remote sensing data revealed that there was an increasing tendency for croplands, settlements, and forest lands at the expense of grasslands and shrublands. In Satame, shrub land and grassland decreased annually by –128.7 and –139.9 ha per year, while grassland and shrub cover reduced annually by –248.2 and –144.5 ha per year in Legabora, respectively. The Local communities perceived agricultural expansion, population growth, settlement expansion, and poverty as the main drivers of LULC changes, while deforestation, land degradation, low production and loss of biodiversity were the major consequences. From this study, it can be inferred that LULC has undergone significant changes over the past 45 years, with both positive and negative impacts. Hence, this study provides a foundation for land management policies and strategies in this watershed and other watersheds facing similar problems.