The aim of this study was to determine the level of technical efficiency of smallholder Malt barley producers and identify factors affecting technical efficiency of farmers in Malt barley production of EstieWoreda, Amhara Region Ethiopia. Tow stage sampling technique was employed to select 259 sample farmers. Cobb-Douglas stochastic frontier production function approach with a single stage estimation procedure with the inefficiency effect model simultaneously was used to estimate technical efficiency and identify the determinants of efficiency of Malt barley producing farmers. The mean level of technical efficiency of the sample farmers was about 84.5%. This shows that there exists a possibility to increase the level of Malt barley output by 15.5% through efficiently utilizing the existing resources. The estimated stochastic production frontier model together with the inefficiency parameters showed that household size, farming experience, extension contacts and usage of improved seed were found to have negative and significant effect on technical inefficiency, while sex of the household headwas found to have positive and significant effect on technical inefficiency of Malt barley production. Hence, local government should provide necessary supports such as improved seed, experience sharing and provision of extension advisory for farm households.