Changes in land use and land cover (LULC) and climate increasingly influence flood occurrences in the Gumara watershed, located in the Upper Blue Nile (UBN) basin of Ethiopia. This study assesses how these factors impact return period-based peak floods, flood source areas, and future high-flow extremes. Merged rainfall data (1981–2019) and ensemble means of four CMIP5 and four CMIP6 models were used for historical (1981–2005), near-future (2031–2055), and far-future (2056–2080) periods under representative concentration pathways (RCP4.5 and RCP8.5) and shared socioeconomic pathways (SSP2-4.5 and SSP5-8.5). Historical LULC data for the years 1985, 2000, 2010, and 2019 and projected LULC data under business-as-usual (BAU) and governance (GOV) scenarios for the years 2035 and 2065 were used along with rainfall data to analyze flood peaks. Flood simulation was performed using a calibrated Hydrologic Engineering Center–Hydrologic Modeling System (HEC-HMS) model. The unit flood response (UFR) approach ranked eight subwatersheds (W1–W8) by their contribution to peak flood magnitude at the main outlet, while flow duration curves (FDCs) of annual maximum (AM) flow series were used to analyze changes in high-flow extremes. For the observation period, maximum peak flood values of 211.7, 278.5, 359.5, 416.7, and 452.7 m3/s were estimated for 5-, 10-, 25-, 50-, and 100-year return periods, respectively, under the 2019 LULC condition. During this period, subwatersheds W4 and W6 were identified as major flood contributors with high flood index values. These findings highlight the need to prioritize these subwatersheds for targeted interventions to mitigate downstream flooding. In the future period, the highest flow is expected under the SSP5-8.5 (2056–2080) climate scenario combined with the BAU-2065 land use scenario. These findings underscore the importance of strategic land management and climate adaptation measures to reduce future flood risks. The methodology developed in this study, particularly the application of RF-MERGE data in flood studies, offers valuable insights into the existing knowledge base on flood modeling.