This study was carried out for assess changes in land-cover and land-use from 1987 to 2006 in the Azad dam watershed of Kurdistan province. For this purpose, initially using Landsat satellite images, percent of vegetation cover map was provided then by correction geometric, radiometric and the season difference in imaging, the best band combination was selected and land-use maps was prepare using Maximum Similarity Likelihood algorithm and supervised classification. The overall accuracy test used to determine the accuracy of produced map. The result showed that, the area of irrigated land from 14.33% to 13.70%, dry land from 15.43% to 26.63% and poor rangelands from 24.37% to 42.17% have increased but, the average rangelands from 28.57% to 14.83% and good rangelands with shrub cover from 17.30% to 2.64% have been reduced. Also, classification accuracy in irrigation land, dry land, poor and average and good rangelands were determined 66, 74, 82, 76 and 84 percent respectively. Subsequently, the amount of soil loss and sediment yield using EPM model have been estimated that in 1987 this amount was 8.7 m3/ha/y and to 10.2 m3/ha/y for 2006 was increased. Finally, obtained results of economic estimation and occurred soil loss showed that stakeholders were damaged to 10 billion rails in the study area.