Watershed is not simply the hydrological unit but also socio- political and ecological entity which plays crucial role in determining food, social, and economical security and provides life support services to rural people and its management through integrated participatory approach is useful strategies for reducing poverty, improving livelihood resilience and sustainability. Integrated and sustainable watershed management is an effective way to address complex water and land resource challenges and its implementation has not been successful in most countries including Ethiopia. Also there is no enough understanding on integrated watershed management in most parts of the country including South-Western part of Ethiopia. This paper mainly aimed to assess the suitability, acceptability and impact of participatory integrated watershed management at Somodo experimental watershed. Primary data was obtained through semi-structured questionnaires and group discussion with experimental group (60 HH) and control group (40 HH).These data were arranged with the help of Microsoft excel and analyzed by SPSS version 20 software. The study was under taken for five years, 2011 to 2015, through managing the watershed by intensifying technologies to solve the identified problems of the watershed, and to improve the livelihood of the community through participatory and integrated approach. Soil erosion, decline in soil fertility, deforestation, crop and animal disease, fodder and forage problems are the leading ones. Major actions taken to overcome these problems were introduction of biological and physical Soil and water conservation measures; fertility enhancement activities, establishment of community nursery and plantation of niche compatible multipurpose trees, introduction high yielding crops, introduction of apiculture and poultry technologies, and introduction of improved energy saving stoves. The study showed that participatory integrated watershed management have a Positive impact on hydrology, socio-economic and environment of the watershed. And the study recommended participatory integrated watershed management for successive development of watersheds with the problem similar to Somodo watershed. Any study, model based, in the watershed on hydrological behavior and others is also appreciable.