The Guge mountain range of Gamo highland, which is the home of nearly three quarter of a million people, likely constitute one of the most affected part of the Ethiopian mountain system in terms of soil nutrient depletion, grassland and forest degradation and associated disruption in rural livelihood. Landcover and use change detection analysis using GIS technique depicts that there is substantial alteration of cover dynamics in the area since 1976. In Guge area, agricultural activities is constrained by factors like frost/fog, low level of fertilizer application due to high cost, soil acidity, soil erosion and expansion of imported weed variety locally named as “Wosana”. In response to the constraints, currently some crop varieties were phasing-out of production (wheat and barley) and replaced by high yielding and crop varieties which are resistant to harsh climatic condition (Bashkala, Dana marke and potatoes). During surveyed period, in response to varying environmental and economic constraints household average food production was lower than annual food requirement, implying that food shortage is severe in the area