Irrigation scheduling is a critical management input to ensure adequate soil moisture for optimum plant growth, yield, quality, water use efficiency, and economic return. Besides farmer irrigation practice including irrigation scheduling in Northwest Ethiopia is cultural. The objective of this study was to evaluate CROPWAT irrigation scheduling for hot pepper and water use efficiency through on-farm participatory approaches Northwest Ethiopia. The experiment was conducted at two sites in Awi Zone, Dangela district (Ligaba) and Jawe district (Wobomariam), Northwest Ethiopia for two consecutive years 2017 and 2018. The experimental design was used a paired ‘t’ design it compares the effects of CROPWAT8 irrigation scheduling versus farmer's irrigation practice under both the furrow irrigation system. From January to May irrigation season gross irrigation depth for hot pepper considering field irrigation application efficiency of 60% was 466.4 and 720.2 for Ligaba and Wobomariam site respectively. The paired ‘t’ analysis revealed that water use efficiency and hot pepper fresh yield were significantly increased under the CROPWAT8 irrigation scheduling practice as compared with farmers irrigation practice. Hot pepper water use efficiency was improved by 43.7% and 9%%, and hot pepper fresh yield was improved by 12% and 31.4% for Ligaba (high land) and Wobomariam (low Land) areas of Northwest Ethiopia. In addition to this participant farmers and stakeholders also evaluate CROPWAT irrigation scheduling positively it could be used locality conditions. This shows the CROPWAT8 irrigation scheduling has increased significant benefits (proper water usage and hot pepper fresh yield increment). We conclude that the CROPWAT irrigation scheduling system is a promising technology to estimate crop water and irrigation water requirements with when and how much irrigate to corresponding growth stage. And also, that can improve hot pepper fresh yield of small-scale irrigation in Northwest Ethiopia.