Hot pepper is one of the most important vegetable crops in Ethiopia. However, the production and productivity of the crop is very low, which is associated with lack of specific recommendation of fertilizer and spacing. The present study was therefore initiated with the objective of identifying the optimum rate of nitrogen and intra row spacing for economical production of pepper under irrigation condition in Bahir Dar Zuria District. The treatments consisted of four levels of nitrogen (0, 41, 82 and 123 kg ha-1) and three intra row spacing (20, 30 and 40 cm) where Mareko Fana pepper variety was used as test crop. The treatments were arranged in factorial Randomized Complete Block Design with four replications. Data on phenology, growth and yield parameters of pepper were collected timely as per their respective standard procedures and analyzed using SAS version 9.2. The results of the study indicated that all the collected parameters of pepper were significantly influenced by the rate of nitrogen and intra row spacing. Relatively the increased days to maturity (115.25 days), plant height (69.21 cm), canopy diameter (38.43 cm) and number of pods per plant (27.82) were recorded from treatment combinations of 123 kg ha-1 N × 40 cm intra row spacing. Treatments that received 123 kg ha-1 N at 20 cm and 82 kg ha-1 N at 30 cm intra row spacing gave highest green pod yield 17.32 t ha-1 and 17.15 t ha-1 respectively. Moreover, the treatment combination of 123 kg ha-1 N and 20 cm intra row spacing generated highest net benefit (322,685.43 ETB ha-1) with acceptable MRR of 111.01%, which can be recommended for profitable production of green pepper under irrigation in the study area and areas with similar agro ecologies. Furthermore, as the studies was conducted at one location for a single season, repetition of the study across different representative agro ecologies and seasons in the district both under rain fed and irrigation condition is also recommended. Keywords: Green pod yield; Intra row spacing; Mareko Fana variety; Nitrogen fertilizer