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Land use/land cover change is a global phenomenon which reflects natural resources degradation and/or utilization. Remote sensing and GIS have been widely used to monitor such changes at watershed level. The present study evaluates the LU/LC change during 1989 - 2001 in a semi-arid watershed of central India. Geocoded satellite data of 1989 and 2001 on 1:50,000 scale, were visually interpreted to prepare thematic maps which were later digitized using ArcGIS softwares. The analysis shows that vast tracts of cultivated land have become uncultivated and at some places even converted to wasteland. However, the land under dense forest and open forest has decreased due to expansion of built-up land and other anthropogenic activities. Increase in area of uncultivated land, wasteland and decrease in cultivated land and open scrub is also supported by rainfall analysis, which shows a declining trend and a fall of 186.93 mm in average annual rainfall for 1986-2003 period. The change detection map prepared using land use/land cover of 1989 and 2001 as inputs shows that out of the total geographical area of the watershed, 25.78% of the watershed area has seen a change from one land use category to another, however rest 74.22% has remained unchanged.