Wheat (Triticum aestivum L.) is an important food security crop in Ethiopia. However, the production and productivity of wheat is threatened by yellow rust which is economically important disease in wheat production areas. The study carried out to assess the occurrence and extent of damage of yellow rust disease and determine the combined effect of varieties and fungicides for the management of yellow rust disease. Survey was conducted in the two major wheat producing areas of east Gojjam Zone at Gozamen and Debre Elias districts. A total of 378 wheat farmer fields were assessed for the prevalence, incidence and severity of yellow rust disease. Farmer fields were assessed and the collected data were analysied by using SPSS version 20. The field experiment was conducted at Elias Zuria Kebele in Debre Eliase district to develop valid management options using different fungicides combined with different wheat varieties. Three wheat varieties (Picaflor, Ogolcho and King Bird) and two different fungicides (Natura, and Jeba) included as treatments and laid out in factorial arrangement in randomized complete block design with three replications. The disease, yield and yield related data were subjected to analysis of variance using the general linear model procedure of SAS 9.2. From 378 farmer fields 92% were infected in both districts. Relatively high mean incidence, severity and prevalence of yellow rust disease was recorded at Gozamen District which were 100, 90, 100 % respectively and40 % incidence, 30% severity and 80% prevalence was recorded at Debre Elias district. Significant (p≤ 0.01) difference was observed in the magnitude of the parameters of disease and crop measured between treatments. Results showed that the mean terminal severities of yellow rust up to 49%, 41.6%and 20.3%were recorded on unsprayed variety of Picaflor, Ogolcho and Kingbird respectively. Jeba250EC fungicide gave highest Plant disease control up to 64.6%, 60.0% and 57.3% on Picaflor, Ogolcho, and Kingbird variety respectively. Unsprayed varieties results a significant (p≤ 0.01) grain yield and thousand kernel weight losses up to 61.3% and 495, 45.1% and41.4%, 23.8% and 23.9% on Picaflor, Ogolcho and Kingbird respectively. Jeba250EC fungicide recorded maximum 3.5ton/ha grain yield and 35.0g thousand kernel weight. Kingbird and Jeba 250 EC combination could be recommended for Yellow rust management on Bread wheat production. Key words: Grain yield thousand kernel weight, incidence, severity