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This paper analyzes optimal watershed management focusing on reservoir-level sediment removal techniques. Although dams and reservoirs provide several benefits, sedimentation may reduce their storage capacity. As of today, the Aswan High Dam (AHD) in Egypt faces approximately 76% reduced life of the reservoir. Since the AHD is the major fresh water source in Egypt, sustainable use of this resource is extremely important. A model is developed to simultaneously determine optimal sediment removal strategies for upstream soil conservation efforts and reservoir-level sediment control. Two sediment removal techniques are considered: mechanical dredging and hydro-suction sediment removal     :       .  An Optimal Control Theory on Economic Benefits of Dam Management: A Case of Aswan High Dam in Egypt Yoon Lee and Dong-Yeub Kim 1) .(Korea Environment Institute) 2)  (Department of International Business and Trade, Kyung Hee University)  :2010 3 11  :2010 6 11