Islands are special bodies of land surrounded by seawater. Many islands are facing water shortages as the demand for groundwater increases, thus, highlighting the importance and urgency of the assessment, planning, and management of island groundwater resources. To facilitate the same, the groundwater potential of the Penghu Islands in China was assessed for the first time using remote sensing (RS), geographic information system (GIS), and the analytic hierarchy process (AHP). Long‐term series remote sensing studies were also conducted to monitor the dynamic change in groundwater potential and to identify groundwater potential areas. In this study, the geological environment factors were normalized, and their weight was allocated based on the AHP of RS and GIS. The groundwater potential assessment (GPA) index, established using the weighted comprehensive algorithm, was used to analyse groundwater potential and demarcate groundwater potential zones. Finally, the trend in the spatio‐temporal variation of groundwater potential was analysed using long‐term series remote sensing data. The results from 2015 to 2021 showed that the Penghu Islands can be divided into five groundwater potential zones of different grades, such as 6.3%–8.1% of grade I, 22.2%–24.2% of grade II, 23%–24.4% of grade III, 19.6%–21% of grade IV, and 25.1%–25.5% of grade V. The results of the GPA were verified by comparing them with the abundance of water‐content rock formation in hydrogeologic maps, which yielded correlation coefficients of 78.3%–88.9%. Overall, the groundwater potential zones of different grades in the study area tended to be stable all year‐round, including the zones of grades I and II. The results of this study highlighted the reliability of predicting groundwater potential based on long‐term series remote sensing data and its usability to local personnel in appropriate groundwater resource planning and management.