This study presents analysis of Rainfall variability and trends of extreme rainfall events in the Oda Gunufeta -Cherecha -Dechatu watershed, Awash Drainage Basin, Eastern Ethiopia. The study employed the coefficient of variation and the Precipitation Concentration Index (PCI) as statistical descriptors of rainfall variability. The indices at the five stations were subjected to non-parametric Mann-Kendall test to detect the trend over the period between 1985 to 2014. The results of the study revealed that, the watershed experiences moderate inter-annual rainfall variability. The Belg rainfall shows high variability than Kiremt rainfall. Highest Belg & Kiremt rainfall variability is observed in Dire Dawa with coefficient of variation of 46% and 40% respectively. The annual PCI for the watershed in all the stations under investigation during the record periods showed that 100% of the years for which the annual PCI was estimated fell within the irregular precipitation distribution range or high precipitation concentration. The irregular precipitation distribution also extended to all the stations in short rainy season (Belg rainfall) and in two stations in the main rainy season (Kiremt season). With regard to the rainfall trend, the annual rainfall has showed a negative trend in most of the stations for the period 1985-2014. The Mann–Kendall trend test during the Kiremt season shows a positive trend in Dengego, Dire Dawa, Combolcha and Haramaya and the increasing tendency is significant at p<0.1 in Degego, p<0.05 in Dire Dawa, p <0.05 in Combolcha and p <0.01 in Haramaya. The heavy rainfall events, the 90th & 95th percentiles, in all the five stations showed an increasing pattern but except in Combolcha the trends are not statistically significant. This implies that the watershed has been under increased rainfall intensity and this in turn has the potential cause for high risk of flood occurrences.