In Ethiopia, land degradation in the form of gully development and soil nutrient depletion is a very serious issue. The goal of this study is to determine how different types of land management practices and slope positions affect particular soil physico-chemical characteristics in the Agamssa watershed. Using systematic sampling techniques, soil samples were taken using a sampling quadrat (15 * 15 m) that was placed 50 m apart from one another. A total of 54 quadrats were planted at three slope positions: upper (>15%), middle (10–15%), and foot (3–10%) slope respectively. 18 composite soil samples were then. A two-way ANOVA was used to analyze the data, and the Least Significant Difference (LSD) test was used to separate the means at p ≤ 0.05. According to the study's findings, the value of most soil physical and chemical characteristics was higher in closed area than on open grazing land, as well as at foot slope position compared to middle and upper slope positions. The higher mean value (7.3 ppm) was recorded at the foot slope, while the lower mean value (4.9 ppm) was found at the upper slope position. The exchangeable cations such as Mg+2, K+, and Na+ were significantly (p≤ 0.01) affected by the main effect of land-use types. The higher mean values of Mg+2 (9.70 mq/100g), K+ (0.38 mq/100 g), and Na+ (0.035 mq/100 g) were found at area closure, whereas the lower mean values of Mg+2 (7.33 mq/100g), K+ (0.30 mq/100 g), and Na+ (0.027 mq/100g) were recorded at open grazing land. It was able to conclude this study that area closure enhances the physical and chemical qualities of soil and recovers woody plant species. Therefore, converting open grazing land into a closure area is advised.