An increase in urban population and the rising demand for food and other essentials perpetuate a rise in the amount of waste being generated daily by each household. In Ethiopia, this waste is eventually thrown into open dump sites. It can cause severe impact on soil and surface water quality. As a result, it becomes the probable source of human health risk through food chain. Therefore, this study was aimed at assessing the effect of a solid waste dump site on surrounding soil and river water quality in Tepi town, Southwest Ethiopia. Three surface water, one leachate, and four soil samples were collected and analyzed. Six heavy metals for surface water and leachate samples and four heavy metals for soil samples were measured by flame atomic absorption spectroscopy. In addition, physiochemical parameters were analyzed using standard methods. The data were analyzed statistically using Origin pro version 8.0 computer software packages. The pH of soil was slightly basic ranging from 8 ± 0.1 to 8.7 ± 0.21. Electrical conductivity was lower at 60 meters (1800 ± 0.5 μ s/cm) and higher in the other sample sites (3490 ± 0.66–4920 ± 1.04 μ s/cm). The concentration of heavy metals in soil samples revealed cadmium (0.53 ± 0.01–2.26 ± 0.02 mg/kg), zinc (623.93 ± 0.29–859.41 ± 0.02 mg/kg), lead (3.26 ± 0.25–57.560.26 mg/kg), and copper (204.06 ± 0.06–337.11 ± 0.01 mg/kg). Lead, cadmium, manganese, nickel, copper, and zinc were found in the leachate water; nickel and manganese were found in the nearby river water; BOD ₅ and COD for both leachate and stream water samples were found to be higher than standard guideline values. The finding suggested that solid waste open dump site adversely affects soil and water quality in the study area and becomes a probable source of risk for human health via the food chain.