Rice production and productivity in Ethiopia, is limited mainly due to declining soil fertility, inappropriate fertilizer rate and unbalanced application without soil analysis. There is also a need to optimize the fertilizer under farmers’ conditions particularly its use along with organic resources. Therefore, a field experiment was carried out to determine the combined effect of farm yard manure (FYM) and NPS fertilizers on yield and yield components of rice (Oryza sativa L.) in Gurafarda District, Kuja site research station of Mizan-Tepi University during 2018 main cropping season. Factorial combinations of four levels of (FYM) (0, 4, 8 and 12) t ha-1 and inorganic fertilizers (NPS) (0, 50, 100 and 150) kg ha−1 were laid out in Randomized Complete Block Design with three replications using NERICA- 4 variety as a test crop. Well fermented FYM was applied before two weeks and NPS fertilizer was applied at planting as well as urea was applied uniformly in split form. All agronomic activities were done based on the recommendations for rice production. Analysis of variance showed that very highly significant difference among treatments for most of traits recorded. Application of 12 t FYM ha-1 combined with 150 kg ha−1 NPS fertilizes gave the longest plant height (123.5cm) and Panicle length (34.4cm) whereas the shortest plant height (71.26.cm) and panicle length (19.96 cm) were measured from control treatment. Highest number of total and productive tillers 110.33 and 128/m were recorded from the application of 12 t ha-1 of FYM with 150 kg ha−1 NPS fertilizes respectively, whereas the smallest total and productive tiller numbers 45.33and 54.66/m were recorded from nil plot. The highest significant grain yield (4.08 t ha-1) and aboveground biomass yield (8.98 t ha-1) were recorded from the application of 8 t ha-1 of FYM with 150 kg ha−1 NPS fertilizes; whereas the lowest grain yield (1.06 t ha-1) and aboveground biomass yield (3.7 t ha-1) were recorded from nil plot. Based economic analysis the highest net benefit (52,489.00 ET birr) and the lowest net benefit (19,696.00 ET birr) were obtained from the combined application of 50 kg ha-1 NPS fertilizer with 8 t ha-1 FYM and control plots respectively. The highest marginal rate of return (43508.57%) was obtained from sole application of 100 kg ha-1 NPS blended fertilizers. Thus, based on the partial budget analysis, it is advisable to apply sole application of 100 kg ha-1 NPS fertilizers for study area as the 1st option due to its high net benefit. Combination of 8 t ha-1 FYM with 50 kg ha-1 NPS compound fertilizer also can be as the 2nd option due to its high net benefit. Additionally if there is amply human power, application of 8, 4 and 12 t ha-1 FYM only can be recommended as 3rd, 4th and 5th options respectively. However, to make reliable and acceptable recommendation it is better to repeat this experiment across locations and over season. Key words: Farm Yard Manure, NPS Fertilizers, Rice