The escalating pressure on water resources in agricultural regions has become a catalyst for water conflicts. The adoption of innovative approaches to estimate actual evapotranspiration (ETa) offers potential solutions to mitigate conflicts related to water usage. This research presents the application of a remote sensing-based methodology for estimating actual evapotranspiration (ETa) based on a two-source energy balance model (TSEB) for riparian vegetation in Nebraska, US using the Spatial EvapoTranspiration Modeling Interface (SETMI). Estimated results through SETMI and field data using the eddy covariance system (EC) considering the period 2008–2013 were used to validate the energy balance components and ETa. Modeled energy balance components showed a strong correlation to the ground data from EC, with ET presenting R2 equal to 0.96 and RMSE of 0.73 mm.d⁻¹. In 2012, the lowest adjusted crop coefficient (Kcadj) values were observed across all land covers, with a mean value of 0.49. The years 2013 and 2012, due to the dry conditions, recorded the highest accumulated ETa values (706 mm and 664 mm, respectively). Soybeans and corn exhibited the highest ETa values, recording 699 mm and 773 mm, respectively. Corn and soybeans, together accounting for a substantial portion of the land cover at 15% and 3%, respectively, play a significant role. Given that most fields cultivating these crops are irrigated, both pumped groundwater and surface water directly impact the water source of the Republican River. The SETMI model has generated appropriate estimated daily ETa values, thereby affirming the model’s utility as a tool for assisting water management and decision-makers in riparian zones.