Land degradation has caused a decline in land productivity and triggering landslide incidents in Bendo Watershed. This area has been selected as a study area which represents a characteristic upland area of the region. The research examines land capability analysis in order to reduce land degradation and disaster incidents and for sustainable use of land resources. The geomorphology approach was used along with sixteen landform units as unit samples. Further, artificial neural network models were used to classify land capabilities. Network architecture 10- 8-1 was used on the classification process due to the lowest error value factors. The findings of the study present that 20,46% of Bendo watersheds are prone to land degradation. Physical characteristics within the area are contributing to increasing land degradation. The capability classes of Bendo watershed range from class II to class VII. The upstream areas have erosion and intensive landslides as their limiting factors, hence tend to have poor land capability classes. While the middle to downstream areas of Bendo watershed has better land capability classes with more diverse land use recommendations.