The study analyzes the level of technical efficiency of smallholder Malt barley producers and identifies factors affecting technical efficiency of farmers in Estie Woreda, Amhara region of Ethiopia. Tow stage sampling technique is employed to select 259 sample farmers. CobbDouglas stochastic frontier production function approach is 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 study implies four sets of recommendations that could help to increase domestic malt barley production by addressing the major sources of technical inefficiency.