The issue of fertilizer nowadays is the important question which needs further investigations and this study conducted to explore the economic evaluation and its determinants of fertilizer use in the dryland parts of Amhara region. The study applied multistage sampling with Kothari sample size determination formula and data were collected using questionnaire and checklists from primary data sources. The data were analyzed through descriptive statistics, inferential statistics and econometric models (seemingly unrelated bivariate probit model (SUBPM) and the double hurdle model). The marginal rate of return (MRR) showed that the All-B treatment had the highest MRR of 799.93% for teff and 62.46% for sorghum in Sekota district. The 50% (All+K) treatment recorded the highest MRR for teff at 29.36% while All-B recorded the highest MRR for sorghum at 46.72% in Tehuledre district. The All-B treatment recorded the highest MRR for teff at 100.36% while 150% (All+K) recorded an MRR of 37.88% for sorghum in West Belesa district. Based on the SUBPM result, the mean willingness to pay (WTP) for the NP fertilizer is 45.65 ETB/Kg. The results showed that the use of fertilizer is determined by farmers’ knowledge about fertilizer use, perception of fertilizer use, fertilizer price, and number of active workers in the household, extension service and proximity to the input center from the household residence. Education, knowledge of fertilizer application, annual income, and experience in fertilizer use, farm size and proximity to markets have significant effects on level of fertilizer utilization. Based on the findings, government and respective actors due attention for the heterogeneity of locations during fertilizer recommendations, enhancing extension services to improve their knowledge and perception, optimizing fertilizer prices, improving proximity to input and market centers.