Gilgel Abay catchment, which is situated on the NW Ethiopia plateau and is one of the largest catchments that drain towards lake Tana. Groundwater potential and its recharge zone are still not done for this complex hydrogeologic situation. Therefore, the geographical information system (GIS) and remote sensing (RS) based MCDA methods were applied. To do so, ten factors geology, geomorphology, lineament density, rainfall, slope, drainage density, NDVI, soil type, curvature, and land use land cover as a thematic map derived from satellite image and secondary data were prepared using weight overlay analysis. Secondary sources of data were used for geology, soil, and geomorphological maps preparation. Then the weight for each factor/theme and classes were assigned based on Saaty's scale of AHP/ANP based on their relative importance to groundwater potential. Five groundwater potential zones were delineated as very good, good, moderate, poor, and very poor using RS and GIS-based MCDA. Very good and good groundwater potential zones were found in the central and northern part of the catchment whereas poor and very poor potential areas were located in the southeastern part of the study area near Gish Abay. Moderate groundwater potential areas were located in the south, northeast, northwest, and central part of the catchment. Productive boreholes and shallow wells fitted to the higher and moderate potential zones in the groundwater potential map whereas most non-productive and low productive areas were fitted to poor and very poor potential zones in the map. Map removal sensitivity analysis indicated that geology, lineament density, and slope were found to be the most sensitive parameters while single parameter sensitivity analysis showed that geology, slope, soil type, and land use/cover as the main sensitive parameters. Based on these sensitivity tests, the emphasis is given on these parameters in groundwater potential study. Therefore, this research proves that remote sensing and GIS techniques are efficient methods in delineating groundwater potential zone and for its better planning and management program formulation.