<p>In tropical countries, the research evidence on land use change, drivers, and socio-economic impacts plays a crucial role in motivating and encouraging farmers to sustain agricultural ecosystems. This study explores land use and land cover change trends over the past 23 years, and also explores the drivers and socio-economic impacts of land use change in two districts (Boloso Sore and Hadero Tunto). The study utilizes remote sensing imagery downloaded from the USGS and socio-economic survey data collected from randomly selected 378 households. The Iso Cluster unsupervised classification, a machine learning approach for grouping similar land-cover types, and the Normalized Difference Vegetation Index (NDVI), a measure of vegetation health derived from satellite imagery, are employed to analyze and visualize change trends over multiple periods. Multiple linear regression and Tobit models are used to examine the drivers of small-scale eucalyptus plantation expansion. The results reveal a 10.22% increase in woody/plantation land area from 2010 to 2023. While degraded land significantly decreased by 13.61% during the same period. Farmland degradation, scarcity, and the rising cost of agricultural inputs, coupled with recurrent droughts and external influences from neighboring farmers, are the main drivers of small-scale plantation expansion. Although these plantations supply farmers with accessible wood for construction and fuel, they also reduce food crop production, on-farm employment, and livestock feed availability. Ecologically, they contribute to biodiversity decline, reduced soil fertility, and microclimatic changes that further intensify land degradation. The findings of this study offer valuable policy insights for both proponents of tree planting and those seeking to maximize food crop production.</p>