This research evaluates groundwater potential and quality in (Sinako-Yekalo watershed Tekezie Basin, Ethiopia). The study area is generally characterized by various topographic features. The high land area is covered by Tarmaber Formation and the remaining area consists of Ashangi Formation and Aiba basalt. Insufficient water resources, lack of hydrogeological investigation, and increasing demand for water resources for different purposes are the main problems in the study area. Therefore, this study aims to identify the groundwater potential zone, aquifer system, and suitability of groundwater for drinking and irrigation purposes. Different approaches have been used to quantify hydrometeorological components and estimate the recharge amount in the study area. The annual rainfall of point data from different nearby stations of the area were analyzed by using two methods (Thiessen polygon and Isohetal). The annual recharge in the study area is estimated by using soil water balance (SWB) method considering different meteorological components (areal depth of rainfall, evapotranspiration, temperature, wind speed, sunshine hour, and relative humidity). The groundwater potential zone was delineated from seven thematic layers (rainfall, geology, slope, land use land cover, drainage density, lineament density, and soil) by weighted overlay using the analytical hierarchy process (AHP) tool of the multi-criteria decision analysis (MCDA) technique. The groundwater potential zone map in the study area is categorized into five different zones. These are very low (0.4%), low (5%), moderate (56%), high (36.6%), and very high (2%). The aquifer system in the study area can be categorized into low (0.5-2 l/s), moderate (2-5 l/s), high (5-25 l/s), and very high (>25 l/s) productive aquifers based on wells and springs yield. The water types in the study area includes Ca-HCO 3 IV , Ca-Mg-HCO 3 , NaNO 3 -HCO 3 , Na-Ca-HCO 3 , Ca-Na-HCO 3 , and Ca-Na-Mg-HCO 3 . The water sources from boreholes, rivers, and springs except for 12.5% of water points are suitable for drinking and irrigation purposes.