Groundwater supplies have been exploited because of global water shortage. Therefore, effective management of water resources is crucial. Identifying potential groundwater regions in arid and mountainous terrains is challenging for many developing nations because of a lack of financial and human resources. An integrated strategy using remote sensing, geographic information systems, and multi-criteria decision analysis of the hierarchical analytical process was used to identify potential zones for groundwater in the Gulufa Watershed, Blue Nile River Basin, Ethiopia, which covers 1700 km2. Nine groundwater-influencing thematic layers were produced from conventional and satellite data, including lineament density, lithology, slope, geomorphology, soil, land use/land cover, drainage density, rainfall, and elevation. Satty scale values for the thematic layers and their classes were determined based on experts' opinions and literature. Thematic maps were integrated based on their weights and rates to produce a potential zone map using ArcGIS weighted overlay spatial function tool. According to the results, the prospect zone map consists of 383 km2of very high, 865 km2of high, 350 km2of moderate, 58 km2of low, and 0.3 km2of poor zones. Validation of the potential zone map using existing boreholes yielded a close agreement, demonstrating the method's accuracy. According to the map removal sensitivity analysis results, the potential zone was more sensitive to lithology than other thematic layers. The map created in the research region can be an essential reference for identifying potential locations for additional groundwater resource exploration, planning, and management.