The primary objective of this study was to examine the status of woody species composition and diversity along the Walga River of Wonchi, Southwestern Ethiopia. Fifty quadrats of 10 m x 50 m were laid at 500 m interval through systematic sampling method along the river line. Vegetation height (≥2.5 m) and DBH (≥2.5 cm) of only tree species were measured and altitude, ecological disturbances such as, grazing intensity and human impacts were included as main environmental variables at each of the sampled plots. The data was analyzed using different R statistical packages. Ninety-nine woody vascular plant species belonged to 81 genera and 45 familieswere recorded in Walga riparian vegetation. Only 10% of specieswere endemic to the Flora area. Asteraceae and Fabaceae had the highest number of species. Majority of the species (52.5%) were shrubs. Four major plant community types were identified: Euclea divinorum-Maytenus arbutifolia (1), Pterolobium stellatum- Calpurnia aurea (2), Brucea antidysenterica-Prunus africana (3), Erica arborea-Hagenia abyssinica (4). Species richness, true diversity and importance values were highestin community type 2(the lowest altitude ranges between 1976-2212 m a.s.l.) while evenness was highestin community type 3(mid altitude ranges between 2359-2676 m a.s.l.). Both community typeswere comprised of 56% of all recorded species and all endemic taxa except two. The highest percentage of species in lower frequency classes indicates a higher degree of floristic heterogeneity. There was a strong negative correlation (r = -0.65, p<0.001) between species richness and altitude with 42% of the variation in species richness per plot being explained by altitude. Our findings suggest that human disturbances and excessive livestock grazing are the main threats in community types1 and 2. We conclude that identifying major plant community types and underlying environmental conditions may help to manage and conserve forest resources in the area.