The present study investigated appropriate tree species for biomass energy utilization by determining trees' dry biomass and fuel value index, taking into account that developing countries rely heavily on fuelwood for energy consumption. In Ethiopia, biomass currently meets more than 89.5% of total energy consumption. Despite this reliance on biomass, there is a scarcity of fuelwood as well as data on dry biomass potential and fuel value indices of tree species utilized in various parts of the country. This study was done on the selection of trees for fuelwood purposes based on their dry biomass potential and fuel quality characteristics. Five highly performed Eucalyptus tree species were selected and aboveground biomass was measured using the destructive approach, whereas the fuel value index was computed using the effective method with four parameters (Calorific Value, Wood density, Ash content and Moisture content). These parameters were determined following the American Society for Testing and Materials method. Finally, aboveground biomass and carbon content varied from 13.96kg to 87.47kg and 6.03kg to 37.86 kg Tree-1, respectively. The biomass and carbon content of E. globulus and E. viminalis were both high. The maximum fuel value index was 276.34 for E. saligna. The computed fuel characteristics were statistically varied among tree species at (P ≤0.0001). Based on the tree fuel characteristics findings, E. globulus, E. viminalis, and E. saligna were identified as the best fuelwood species and were suggested for future plantations.