This study was initiated to evaluate the performance of Lahe small-scale irrigation scheme using performance indices such as application efficiency, conveyance efficiency, water distribution efficiency as a tool and to recommend appropriate measures to improve the scheme. The scheme characterization was made by measuring the distribution canals discharge capacity, dimensions, length of flow and functionality of the structures. For technical evaluation of the scheme using performance indices, three farmers’ fields were selected each from the head, middle and tail-end water users. Conveyance Efficiency (Ec), Application Efficiency (Ea) and Water delivery performance (Ed), maintenance indicators were determined. Conveyance efficiency of canals was measured using current meter at different cross section of the canals. Average conveyance efficiencies were obtained as76.28%, 59.88%, and 50.99%respectively for head, middle and end of main canals of the scheme. The application efficiencies were 50.895%, 48.81% and 41.658% in head, middle and tail end location of the scheme respectively. Assessment of farmers’ perception about the performance of the irrigation scheme was conducted using structured questionnaires and group discussions. All respondents confirmed that the establishment of the scheme is very important for them to secure food self-sufficiency. The major causes for the underperformance of the scheme were seepage from the earthen canals and structural failure.