The livelihood of humankind is closely related to the soil resources. Soil erosion is a worldwide environmental problem that reduces the productivity of all natural ecosystems and agriculture. Soil erosion by water is the greatest factor limiting agricultural productivity in humid tropical regions. Several methods exist for controlling soil erosion. The trees in the hedges act as vegetative barriers along the contour of a slope and maintain the organic matter through leaf fall and root residues, while the area between the hedges is used for agricultural production. Koshire sub-watershed is one of the watersheds found in the Demba Goffa district which face a higher runoff problem during rainy season. This study was initiated to evaluate the potential of leguminous shrub hedgerow on reduction of soil loss by runoff and its impact on yield of alley maize. The study was conducted from 2019 to 2020 using three leguminous shrub species (Leucaena leucocephala, Cajanus cajan and Sesbania susban) and one sole maize in hedgerow agroforestry practice using four farmers as replication. Collected data were subjected to ANOVA to analyze variations of parameters among the treatments. LSD tests were used to identify mean differences at 5 % level of significance. The yield of the maize grain yield and yield components did not show a significant variation, but the soil loss was significantly (P≤ 0.05) varied between treatments. The present study concluded that woody shrubs with a fast growth rate work better than those having lower growth rate. Thus, Cajanus cajan can be used with alley maize in hedgerow agroforestry practice to control soil erosion in short time to attain consistent and better erosion control measure. Since the present study was conducted only for two years, further research is ought to be conducted for prolonged time to evaluate their effect on soil loss.