Abstract: Wheat is one of the important cereal crops of Ethiopia. It is the leading crop in land coverage and total production next to tef and maize and in productivity after maize and sorghum. Gurage highlands are also considered to be suitable areas for wheat production in the country. However, the production of wheat in this region is threatened by different wheat rusts; such as stem rust disease. So, this study was conducted with the following objectives: to determine distribution, incidence and severity of wheat stem rust in Gurage highlands. Field survey was carried out in four districts of Gurage zone. A total of 100 fields were surveyed. During survey stem rust disease was occurred in 88% of the fields surveyed in Gurage zone. The mean incidence of pathogen was 47.45%..