This research aimed at evaluation of a given land resource suitable for selected rain fed crops production (malt barley, wheat and teff) in Ambesh watershed. It also quantified suitable land and classified into the land mapping units (LMUs), and presents a land suitability map. Land suitability assessment (LSA) made using climatic condition, topography, soil physical and chemical properties as a major factor integrated with a multi criteria decision making (MCDM) analysis in Ambesh watershed. Fourteen composite soil samples were taken by categorizing the watershed into different land mapping units (LMUs) and analyzed in a soil laboratory. Climatic data, rainfall was obtained from two meteorological stations nearby to the study area. Temperature data derived from Landsat 8 satellite thermal bands data. Data obtained from the soil laboratory and others were finally analyzed using ArcGIS environment and priority estimation tool (PriEsT) software’s. Weighted Sum Overlay was implemented to investigate the final LSA map of the watershed. Results revealed that LMUs, VRe–LPq and LPK.Pq–FLc LMUs has higher overall suitability for all the selected rain fed crops. However, LMUs (VRe–NTu and NTu–VRe) has lower overall suitability values particularly for S1 suitability class (0.05% and 10.6%, respectively). The least suitable LMU is VRe–NTu with 0.05% S1 suitability class and above 99% of the land laid under the suitability classes of moderately suitable, marginally suitable and not suitable for the selected land utilization types. Moreover, about 219.06 ha (17.76%), 217.6 ha (17.64%), 168.9 ha (13.7%), of land are highly suitable for malt barley, teff and wheat crop production, respectively. In conclusion, during MCDM, classifying the land into closer homogeneities (LMU) an important application of LSA integrated with remote sensing and GIS for a better decision making. Meanwhile, majority (above two third’s) of the land in the watershed is under moderate and marginally suitable, it needs intensive land management activities to increase the land qualities and obtain high yields. LSA recommended before land utilization decision has to be made. It is also important to classifying the land into LMUs to make it more homogeneous for sample taking and reducing the prestigious soil laboratory analysis costs.