Flooding is one of the major natural disasters in Sabah, Malaysia. Several recent cases of catastrophic flooding were recorded especially in Penampang area, Sabah (e.g. July 1999; October 2010; April 2013; October & December 2014). Heavy monsoon rainfall has triggered floods and caused great damage in Penampang area. The 2014 floods has affected 40,000 people from 70 villages. The main objective of this study are to analysis the Flood Potential Level (FPL) in the study area. In this study, eigth (8) parameters were considered in relation to the causative factors to flooding, which are: rainfall, slope gradient, elevation, drainage density, landuse, soil textures, slope curvatures and flow accumulation. Flood Potential Analysis (FPAn) map were produced based on the data collected from the field survey, laboratory analysis, high resolution digital radar images (IFSAR) acquisation, and secondary data. FPL were defined using Multi Criteria Evaluation (MCE) technique integrated with GIS software. The information from this paper can contribute to better management of flood disaster in this study area.