Irrigation development has been highlighted as a key tool for boosting economic growth, and rural development is seen as a critical component of Ethiopia's food security and poverty reduction efforts. While a lot of work is put into irrigation development, there is little effort put into performance and sustainability measures. The purpose of this research is to determine the irrigation efficiency of a modest irrigation system. The researchers employed structured home survey questions, interviews, focus groups, field observations, and literature. A total of 31 sample families were chosen at random from the Babu Irrigation scheme's upper, middle, and lower command areas. The physical performance of the Babu Irrigation Scheme is poor, according to the report. The scheme's design command area was 118 hectares; however the current cultivated land area is just 89 hectares. Although the design water flow was 0.109m 3 /s, the actual volume of water supplied to the main canal was just 0.027 m 3 /s (which) is only 25 percent of the design values). The conveyance systems for 65 percent of the Babu Irrigation scheme are broken, and farmers have limited input in the network's water management. Only four farmers out of the 31 respondents were involved in the scheme's maintenance, while 39 percent were involved in the scheme's construction with daily labor payments, the remaining are not participate. The scheme's average conveyance and application efficiency are 80 and 49 percent, respectively. The Babu Irrigation scheme's performance in terms of indicators is only 52 percent, and the overall efficiency of the scheme is only 39 percent.