Abstract: The causes of land cover /land use (LCLU) change are various, and in Ethiopia resettlement undertakings are increasingly becoming a reason for ongoing changes in LCLU. This study of LCLU changes and of advances and performance of agroforestry practices was conducted at Pawe, a resettlement area in northwestern Ethiopia. Investigation of LCLU changes involved a comparison of classified satellite images from 1986 to 2001, coupled with the application of geographic information systems (GIS) and remote sensing techniques. Normalized difference vegetation indices (NDVIs) for the two years were also calculated and compared, to supplement the changes in the natural vegetation cover over the period. In addition, with the help of selected participatory methods, data for the assessment of agroforestry practices, perceptions of the locals about LCLU change and other socio-economic dimensions of the resettlement district, were collected. From the 1986 satellite image, four distinct LCLU classes were described: (i) Bare Land, (ii) Grassland, (iii) Bamboo and Thickets, (iv) Agriculture land/Settlement. The same procedure for the 2001 image resulted in five distinct LCLU classes: (i) Bare Land, (ii) Grassland, (iii) Irrigated land, (iv) Investment Agriculture and (v) Agriculture land/Settlement. Over the 15-year study period, changes in the bamboo and thickets LCLU class was striking; it was completely changed to other LCLU classes at an annual reduction rate of 3.26%, equivalent to an area reduction of 1224.4 hectares. The calculated NDVIs also revealed the indiscriminate vegetation clearance following the establishment of the resettlement district. Multiple factors, such as agricultural land expansion, construction wood harvesting, and fuelwood collection were mentioned as causes of the reduction in vegetation cover, and in particular for the complete de-vegetation of the bamboo and thickets. Home gardening, trees on farmlands (parkland agroforestry), woodlots, live fences, an