Selecting suitable tree species for afforestation and degraded forest restoration is essential for maintaining ecosystem services and biodiversity. This study prioritized tree species for afforestation in the Masuleh Watershed using ecological capability assessment and sustainable forest management criteria. Suitable areas were first identified using the Makhdoom model (2001), based on elevation, slope, and soil depth. Environmental units were then delineated according to topography, soil properties, and vegetation cover, and similar units were merged. Following an assessment of species’ ecological requirements, four candidate species were proposed for each unit. Experts evaluated economic, social, and ecological criteria through a questionnaire, and species priorities were determined using the Analytic Network Process (ANP). Results showed that Caucasian alder (Alnus subcordata), oak (Quercus castaneifolia), maple (Acer cappadocicum), beech (Fagus orientalis), and hornbeam (Carpinus betulus) received higher priorities in suitable units. In poor-quality units, black pine (Pinus nigra) and eldar pine (Pinus eldarika) ranked higher. ANP weights indicate the relative priority of species within each environmental unit rather than an absolute ranking across all species. Integrating ecological assessment with ANP provides a practical framework for site-specific species selection and sustainable forest restoration.