The present study employed remote sensing data, GIS technologies, and drainage morphometric analysis to assess groundwater potential for sustainable development in the Iyenada River Catchment, Rift Valley, Southern Ethiopia. A 30 m spatial resolution Shuttle Radar Topographic Mapper (SRTM) digital elevation model and toposheets were used to demarcate the present study area’s watershed boundary and extract drainage network in Arc GIS software environment. The current study area was divided into eight watersheds, namely WS-1, WS-2, WS-3, WS-4, WS-5, WS-6, WS-7, and WS-8, and the total areal extend is 497.70 Sqkm. The standard formula was used to determine the necessary linear, relief, and spatial morphometric parameters. According to the present investigation results, the current study region includes undulating topography with slopes ranging from 0° to 52°. The groundwater occurrence is inversely proportional to the following morphometric parameter values: stream frequency, drainage texture, drainage density, bifurcation ratio, and form factor; the lower the values, the more significant groundwater occurrence. The groundwater occurrence is directly proportional to the morphometric parameters: compactness coefficient, elongation ratio, circularity ratio, and length of overland flow. The present study areas’ watersheds were prioritized using compound parameter analysis, which combined the mentioned-above morphometric parameters for each watershed. Compound factor values ranging between 3.78 to 5.11 and same was classified into three categories, and priorities were assigned 3.780 - 4.11 (high), 4.12 - 4.78 (medium), and 4.79 - 5.11 (low). The watersheds (WS-2 and WS-4) need immediate attention to minimize the surface runoff and enhance groundwater recharge. The results show that WS-7 having high and WS-1, WS-3, WS-5, WS-6, and WS-8 have medium groundwater potential. Watersheds with poor groundwater potential demand additional thorough research and remedial procedures, including implementing appropriate recharge systems. The current study demonstrates the effective use of remote sensing, GIS, and drainage morphometry in assessing groundwater potential.