This study is conducted to analyze technical efficiency of wheat production in Yilmana Densa District during the 2019 production year. The study is conducted using acrosssectional data collected from 194 sample households based on multistage random sampling technique. The stochastic production frontier and Tobit model were applied to address the objectives. The estimated stochastic production frontier model reveals that the input variables like labor, oxen, improved seed and chemical fertilizer were the significant variables to increase the quantity of wheat output. The mean level of technical efficiency in the study area is 37 percent, indicating that the production of wheat can be increased by 63 percent given the existing technological level. The discrepancy ratio gamma indicated that 96 percent of the total variation from the frontier comes due to technical inefficiency while the remaining 4 percent comes due to factors outside of farmer's control. Among the factors that affect technical efficiency; sex, age, secondary school education, extension contact, proximity, and membership affects technical inefficiency negatively. Besides, age square, family size, amount of credit, land fragmentation, illiterate, primary school education and manure application influence technical inefficiency positively. Hence, emphasis should be given to decrease the inefficiency level of farmers through enabling them to get support by extension experts on the way of the utilization of improved seed and sufficient fertilizer instead of only their provision.