The objective of the present study was to examine the resource use efficiency in groundnut production. The data were collected from 120 groundnut growing sample farmers selected at random from Dharwad and Hubli taluks of Dharwad district during 1994-95. The Cobb-Douglas type of production was used to study the resource productivities. The results indicated that the regression co-efficient with respect to seeds was highly significant in all categories of farms. Regression coefficients with respect to expenditure of plant nutrients and labour charges were significant except of large farmers. But expenditure of plant protection chemicals which was positive in all the categories of farms but significant only in case of large farms. The ratio of marginal value product to factor cost was greater than for all the inputs used in groundnut production indicating scope to increase the use of those resources.