Agriculture remains to be the most important sector of the Ethiopian economy with increasing population pressure and low level of productivity, which aggravates the food insecurity situation by widening the gap between demand for and supply of food. Increasing productivity and efficiency of crop production in general and teff, in particular, could be taken an important step towards attaining food security. This study was aimed at estimating the level of technical, allocative and economic efficiencies of smallholder teff producers; and to identify factors affecting the efficiency of smallholder farmers in teff production in Libo Kemkem woreda, Amhara National Regional State, Ethiopia. To achieve the objectives as well as to answer the preliminary research questions the study was conducted on primary cross-sectional data which was collected from 155 sample farmers in the 2020/21 production year. Both primary and secondary data sources were used with descriptive and econometrics methods of analysis for this study. Cobb-Douglas production function was fitted using stochastic production frontier approach to estimate technical, allocative and economic efficiencies levels, whereas two limit Tobit model was employed to identify factors affecting efficiency levels of the sampled farmers.The stochastic production frontier model indicated that input variables such as mineral fertilizers, land and seed were the significant inputs to increase the quantity of teff output. The estimated mean values of technical, allocative and economic efficiencies were 70, 50 and 35.47% respectively, which indicate the presence of inefficiency in teff production in the study area. A two-limit Tobit model result indicated that technical inefficiency is negatively and significantly influenced by the sex of the household head, education, input access, live stock size and fertility of the teff plot but positively and significantly affected by family size. Similarly, education and credit access affects negatively where as plot distance to home positively and significantly affected allocative inefficiency. In addition, economic inefficiency is negatively and significantly affected by education, input access, live stock size and fertility of the teff plot. The result indicated as there is room to increase the efficiency of teff producers in the study area. The result of the study suggested that the need for expansion of education, timely supply of inputs, credit access and strengthening soil conservation practices in the study areato improve the production efficiency of teff farms