Abstract: Utilization of Nipa palm for ethanol/biofuel production is more advantageous than other ethanol producing crops for it does not compete or in conflict with the growing demand for food. The study aimed mainly to find suitable area for Nipa palm plantation using the following suitability parameters: water salinity, water pH, soil salinity, soil pH, soil texture, water availability/accessibility, elevation, land use, and slope. Along with this, projection on the production of sap, sugar, and ethanol; and required man-power for the expansion of Nipa palm plantation was also included in the analysis. Analytic Hierarchy Process (AHP) was utilized to assign weights of the different Nipa palm suitability parameters, and then the Nipa palm suitability map classified into four categories: high, moderate, marginal, and low suitable was generated using ArcGIS 9.3 software. The map was then compared with existing Nipa palm for validation purpose. The results showed that around 45% of the Khanap Nak area was highly suitable; and around 98% of the existing Nipa palm area was within the highly suitable category.