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Study region: Lake Tana sub-basin of the Upper Blue Nile River Basin, Ethiopia. Study focus: Groundwater use for small-scale irrigation is increasing in the Lake Tana sub-basin. However, the abstraction amount and its impact are not well understood. In this study, a new methodological approach was utilized to estimate the irrigation water abstraction amount, which is based on groundwater level monitoring before, during, and at the end of the irrigation season (2021/2022). The monitoring was conducted on 361 hand-dug wells distributed throughout the sub-basin, which is subdivided into East, Southwest, and North zones. New hydrological insights for the region: Groundwater abstraction for irrigation and associated groundwater level decline estimates are 10.6 × 106 m3 and 2.43 m in the East, 4.2 × 106 m3 and 3.23 m in the Southwest, and 0.6 × 106 m3 and 1.32 m in the North. These abstractions account for 103%, 97%, and 62% of the mean annual groundwater recharge in the East, Southwest, and North zones, respectively. Groundwater is overexploited in the East and Southwest zones although, at the sub-basin scale, the amount of groundwater used for irrigation is small compared to the renewable groundwater resource. However, if groundwater-based irrigation continues to expand especially in the East and Southwest zones, groundwater scarcity at the local scales will worsen. Adaptive management strategies are required to minimize the potential adverse effects on groundwater resources.