Abstract: In this study the semi-distributed model SWAT (Soil and Water Assessment Tool), were applied to evaluate stream flow of Didessa sub basin, which is one of the major sub basins in Abay river basin of Ethiopia. The study evaluated the quality of observed meteorological and hydrological data, established SWAT hydrological model, identified the most sensitive parameters, evaluated the best distribution for flow and developed peak flow for major tributary in the sub basin. The result indicated that the SWAT model developed for the sub basin evaluated at multi hydro-gauging stations and its performance certain with the statistical measures, coefficient about determination (R2) and also Nash coefficient (NS) with values ranging 0.62 to 0.8 and 0.6 to 0.8 respectively at daily time scale. The values of R2 and NS increases at monthly time scale and found ranging 0.75 to 0.92 and 0.71 to 0.91 respectively. Sensitivity analysis is performed to identify parameters those were most sensitive for the sub basin. CN2, GWQMN, CH_K, ALPHA_BNK and LAT_TIME are the most sensitive parameters in the sub basin. Finally, the peak flow for 2-10000 returns periods were determined after the best probability distribution is identified in EasyFit computer program.