Scarcity and threats to freshwater resources from pollution, climate change, and overexploitation have made it increasingly important to have sound watershed management. The link between land, water, and people has further made it necessary to widen the scope of watershed management beyond the “water resources." Overall ecosystem functions as well as the improvement of socioeconomic status of the local communities are of paramount importance for the success of watershed management. The chapter provides a general overview of watershed management and modern challenges originating from climate change and land-use pressures. It highlights some of the critical issues that should be addressed for successful watershed management with a regional emphasis on tropical Africa. In this context, sustainable forest management and also agroforestry is a key factor in water resources management in general and upland resources development in particular. Integrated water resources management (IWRM) including stakeholder participation, livelihood improvement, flood risk management, and financing of watershed management is presented. Furthermore, the scheme of watershed planning process which is fundamental for the development and implementation of watershed management plans is stressed. Watershed assessment, a key component of watershed planning, is outlined based on a case study in the Sasumua dam watershed, Kenya.