Land degradation, accelerated soil erosion, and flash floods have necessitated extensive watershed management in Iran's semi-arid watersheds, yet long-term sustainability depends on local participation and satisfaction. This descriptive-analytical study assessed participation and satisfaction among rural residents of the Touchal-Pakdasht watershed. Data were collected via structured questionnaires and face-to-face interviews with 207 household heads across three villages using stratified random sampling and analyzed with SPSS. Results showed relatively favorable mean participation (3.78/5) and satisfaction (3.65/5). Executive participation scored highest (4.02), while monitoring-evaluation scored lowest (3.13). Social satisfaction (3.72) exceeded environmental (3.61) and economic satisfaction (3.59). A significant positive correlation between participation and satisfaction was confirmed (r=0.681). Significant spatial differences in participation emerged, with the upstream village scoring highest and the downstream village lowest. Education (r=0.42), prior project exposure (r=0.42), and income (r=0.31) showed the strongest correlations with participation. The regression model identified monthly income (β=0.278), occupation (β=0.226), and land and livestock ownership (β=0.221) as significant predictors of satisfaction. These findings indicate participation remains limited to information and implementation phases, with sharp decline in strategic decision-making. Reforming the current top-down, engineering-oriented approach toward participatory management through rural advisory councils, targeted economic incentives, and transparent reporting mechanisms is recommended.