Land degradation and depletion of natural forests made agriculture unsustainable and threaten communities and ecosystems as a whole. The objective of this participatory assessment was to identify researchable issues related to agricultural land and vegetation cover in Gurage zone. Accordingly, seven representative districts were selected and from each district two representative kebeles were purposively selected. Focus Group Discussion with farmers, development agents and subject matter specialists and direct observation were important primary sources of information. The survey result depicts in the Gurage zone land degradation, undulating steep slope topography, small and overwhelmed land tenure, inappropriate land use system, cultural landscape mismanagement, deforestation of indigenous trees and expansion of eucalyptus tree, and decreasing enset production are the major identified problems associated with land use and vegetation cover of the study area. In the mixed farming system, enset is produced as a homestead farm and its coverage is decreasing due to disease, lack of processing machines, and shortage of organic matter. Due to the expansion of eucalyptus and land use change, the majority of native trees are disappearing or decreasing in area coverage. Therefore, enset and eucalyptus require suitable policy attention. In the mountainous areas of Gurage; limited land availability, soil degradation, shortage of appropriate farm technologies, water scarcity, lack of knowledge for alpine agriculture and inconvenient topography for mechanized farming machines issues threaten agriculture of area. Despite the fact that there are few attempts to control land degradation; the issue still needs much attention. Appropriate agricultural technologies and knowledge suited for mountain agriculture, dense populations, enset-based farming systems, and small land tenure are important priority research focus areas for future research.