Fentale volcano is one of the Quaternary and most active volcanoes on the axial segment of Main Ethiopian Rift (MER) with long history of both effusive and explosive eruption styles. It is located adjacent to Awash national park, Lake Beseka, Metehara sugar plantation and factory where more than 50,000 people live. The most important and busiest highway and railway route of the country crosses the lower flanks of this volcano. However, this active volcano was not studied well in terms of its hazard, the vulnerability and risk of the area. Therefore, this research aims to evaluate the spatial extent of a possible future eruption of Fentale caldera using a GIS-based volcanic hazard tool to produce the hazard map, assess the vulnerabilities and risk of the area. First, the hazard of lava flow is assessed by analyzing various data such as distance from caldera, vent, fault, elevation and slope which were considered as factors and weighted based on their respective contributions to the hazard as a result the higher weight is given for both caldera and vent. Whereas satellite image (sentinel 2A) was used for pyroclastic eruption and ash fall hazard. Vulnerability is evaluated through a multi-criteria evaluation of population, infrastructure (road and rail), different facility and land use/land cover. To evaluate the overall risk, the hazard and vulnerability maps were aggregated through pairwise comparison matrices and creating risk maps. The greater risk will be expected from pyroclastic flow hazard and it is followed by ash fall hazard and lava flow hazard. The result risk maps show that Southern part of the Caldera is subjected for a very high risk including highly vulnerable cities, such as Metehara and Adis ketema (Haro Adi), and infrastructures like road, rail, and sugar plantation are also under high risk. The methodology presented in this work allows risk analysis posed by eruptions sourced from the Fentale caldera and is especially useful in focusing mitigation strategies to reduce the loss from such hazardous events.