Energy plays an important role inthe economic and social development of one’s country. The world is currently experiencing an energy crisis due to environmental pollution caused by urbanization, economic development,and rapid population growth. Ethiopia facing a significant challenge in meeting rapidly increasing energy demands. Identifying and utilizing new renewable energy sources, such as hydropower, is critical to reduce the country's energy shortage and reliance on fossil fuels. This research aimed to identify hydropower potential sites and estimate the Tigdar River's capacity for power generation using an integrated Geographical Information System and Soil and Water Assessment Tools.SWAT model, satellite data, and GIS tools were utilized to identify the outlet of the river. In Tigdar watershed, eight sub-basinswere identified within 38.3469km length and 199.11km 2 area.Daily flow data was used for the identification of potential sites in the watershed. The calibration and validation models were found to be the most correlated between simulated and observed data sets. The values of R 2 and E NS were found in a very good performance of the model (>=0.75). Three potential site have been identified. This study estimates water availability for hydropower based on 90% dependable flow. Observed and simulated daily flow data were used to calculate the River's discharge at each potential site. In most cases, maximum discharge was found in Potential site 3 of the Tigdar watershed, with 90% dependability. Hydropower site 3 and 1 have maximum and minimum power production capacities of 4462.04KW and 2294.83KW, respectively. The total power production capacity of the Tigdar watershed is 9194.093KW (9.2 MW). The result shows that the selected River hydropower sites are feasible (in small scale hydropower) based on their installed capacity. As a result, if a hydropower plant is built in the watershed, the surrounding communities will have access to electricity.