In Indonesia, 2145 watersheds currently need to be restored, where around 21 million people spread over ± 23,000 villages live below the poverty line with a high dependence on forests. This condition requires an integrated approach in watershed management, which is aimed at technically restoring environmental conditions and ensuring the welfare of the people in it. One of the strategic approaches that can be taken is to revive local wisdom and traditional knowledge (TK), which has been eroded and neglected, and integrate them with technical approaches based on modern science and knowledge. Based on the author’s research and literature studies, this paper discusses the theoretical framework and implementation practices in integrating traditional knowledge into a science-based sociotechnical system to manage upstream watersheds sustainably. Based on the empirical evidence, efforts to create good biophysical and socio-economic watershed conditions can only be achieved through the active participation of farmers in adopting and integrating scientific technology into their traditional knowledge. This integration is realized in designing and implementing watershed management technology by considering the principles of suitability, applicability, feasibility, and acceptability. In the long term, it is necessary to document TK, patent it, and transfer it to the next generation to ensure that indigenous peoples’ and local communities’ social, cultural, and economic interests are protected.