The objective of this research were: (1) to evaluate of land capability at Posalu upstream watershed area, (2) to plan of land use which suitable based on land capability class so that conservation of soil, water resources and watershed ecosystem can be improved and tolerated. The research conducted at Posalu upstream watershed on January until May 2006. Research method consisted of preparation, pre survey, survey, laboratory analysis, data analysis and determination of land capability class. Result of this research showed that land capability class in Posalu upstream watershed consisted of class II 112,2 ha (12,2 %) with erosion and salinity as limiting factors, class III 722,6 ha (73,3 %) with drainage as limiting factor, Class IV 69,9 ha (7,0 %) with slope as limiting factor of land unit 4 and 8, and rock for land unit 8. Class V 92,9 ha (9,2 %) rock as limiting factor, class VI 21,8 ha (2,2 %) and VII 21,0 ha (2,1 %) with slope as limiting factor and class VIII 16,2 ha (1,7 %) with texture, drainage, rock and permeability as limiting factors. On Posalu upstream watershed found land unsuitable capability class 102 ha (10,3 %) was using garden. Recommendation research on this area is forest by reboysation so that to improve and increase hydrology function from the watershed.