The objective of this paper is to report on the issues and proposed approaches in estimating the contribution of gully erosion to sediment yield at large catchment. The case study is the upstream of Pangani River Basin (PRB) located in the North Eastern part of Tanzania. Little has been done by other researchers to study and/or extrapolate gully erosion results from plot or field scale to large catchment. In this study multi-temporal aerial photos at selected sampling sites were used to estimate gully size and morphology changes over time. The laboratory aerial photo interpretation results were groundtruthed. A data mining tool, Cubist, was used to develop predictive gully density stepwise regression models using aerial photos and environment variables. The delivery ratio was applied to estimate the sediment yield rate. The spatial variations of gully density were mapped under Arc View GIS Environment. Gully erosion sediment yield contribution was estimated as a ratio between gully erosion sediment yield and total sediment yield at the catchment outlet. The general observation is that gullies are localized features and not continuous spatially and mostly located on some mountains’ foot slopes. The estimated sediment yield rate from gullies erosion is 6800 t/year, which is about 1.6% of the long-term total catchment sediment yield rate. The result is comparable to other study findings in the same catchment. In order to improve the result larger scale aerial photos and high resolution spatial data on soil-textural class and saturated hydraulic conductivity – are recommended.