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Soil resource information is vital for sound land use planning and sustainable fertility management. This study was carried out with the objective of characterizing and classifying soils of Yikalo Subwatershed at Lay Gayint district, Northwestern Ethiopia. Representative soil pedons were opened along topographic positions and described on genetic horizon basis in the field for their morphological characteristics and analyzed in the laboratory for selected physical and chemical soil properties. The soils were classified following the FAO (2014). The results revealed the presence of variations in the selected morphological properties within a pedon and along the topographic positions. Soils differed in reaction from 4.57 to 6.42. On the surface horizons of the soil pedons, available P content varied from 0.21 to 3.25 mg kg -1 , while exchangeable acidity ranged from 0.17 to 3.65 cmol c kg -1 soil. There was no consistent trend for cation exchange capacity (CEC) and PBS (percent base saturation) with soil depth and topographic positions. The soils in Yikalo Subwatershed were classified as Hyperdystric Cambisols (Humic), Haplic Alisols (Humic), Cambic Umbrisols (Colluvic) , Haplic Luvisols (Epidystric), and Pellic Vertisols ( Mesotrophic). Optimum rates of organic and inorganic amendments should be applied to reduce the level of soil acidity, and improve the fertility level of the soils for better crop production and productivity.