Irrigation development has been identified as an important tool to motivate economic growth and rural development, and is considered as a corner stone of food security and poverty reduction in Ethiopia. While a lot of effort is being exerted towards irrigation development, little attempt is being made toward the performance of already constructed schemes. Therefore, the major concern of this study is to evaluate the performance of Felanameda small scale irrigation scheme using internal performance indices so as to recommend appropriate measures to improve the scheme management and performance problems. To undertake this study primary and secondary data were collected. Primary data collection included canal water flow measurements using floating method, moisture contents determination of the soils before and after irrigation, measurement of depth of water applied to the fields using parshall flume. In addition, field observations, and interview of beneficiary farmers were made. Secondary data collection has been carried out from different sources in collaboration with DAs and government officials. The result showed that actual volume of water delivered to the main canal was 0.15m3/s but the design amount of water based on the design report was 0.18m3/s. Average conveyance efficiency was 88% of the scheme. The application efficiency result on three farmers‟ farm located on head, middle and tail of the command area were 50.4%, 47.93% and 49.97% respectively. These values were also found to be below the recommended value (60%). The deep percolation ratio was found to be 49.6%, 52.07% and 50.03% for head, middle and tail-end location of test plots respectively and the losses were only deep percolation as the furrows were close ended. The water delivery performance was about 55.6%. The effectiveness of infrastructure computed as 76 % and the sustainability of irrigation scheme was about 66.7%. The overall results of the scheme performance with respect to the indicators perform as relatively poor (64.5%). In conclusion, the overall performance of the scheme is rated as low. Therefore, proper institutional setup, scheme monitoring and upgrading needs to be in place and WUA should be empowered.