The hydrogeological situation of the study area requires the identification of groundwater potential. Remote sensing and satellite data have proven to be reliable tools for understanding various factors that affect groundwater occurrence and movement. This study employed weighted overlay analysis based on satellite imagery and secondary data to create a thematic map for characterizing groundwater potentials in the study area located within Abbay Basin, Ethiopia. Remote sensing (RS) and GIS-based Fuzzy-Analytical Hierarchy Process methods were utilized to classify groundwater potential (GWP) zones into five categories: Very good, good, moderate, poor, and very poor. The central and eastern parts of the study area were identified as having high (33.186%) and very high (2.351%) groundwater potentials, while the western part exhibited poor and very poor potential areas. The groundwater potential map delineated higher and moderate potentials, suitable for installing shallow and production bores. This research demonstrates the effectiveness of RS and GIS techniques for delineating groundwater potential zones, which can aid in the planning and management of groundwater resources. The research findings have the potential to contribute to the formulation of improved groundwater management programs in the study area.