A field experiment was conducted to study the drip irrigation levels in chilli based intercropping systems duringkharif, 2017 at Irrigation Water Management Research Centre (IWMRC), Belavatgi, UAS, Dharwad with nine treatments.The treatment comprised of different levels of irrigation and intercropping systems and their combinations. The treatmentswere replicated thrice in strip-plot design. Irrigating chilli at 0.8 ETo recorded significantly higher fruit yield (750.3 kg ha-1) ascompared to 1.0 ETo level of irrigation (665.3 kg ha-1). Intercropping systems did not affect yield and yield parameters ofchilli. Intercropping of chilli + onion with irrigation at 0.8 ETo recorded higher yield (763.7 kg ha-1) and yield parameters(number of fruits per plant - 43.5; fruit length - 11.3 cm; fruit yield per plant - 45.2 g) of chilli. Significantly higher wateruse efficiency of 2.88 kg/ha-mm was registered in chilli + onion irrigated with 0.8 ETo and it was on par with chilli +groundnut irrigated at 0.8 ETo (2.69 kg/ha-mm). Irrigation effect was not significant on the yield of intercrops (onion, garlic,groundnut and ginger) when intercropped with chilli. Significantly higher chilli equivalent yield (1,954 kg ha-1), gross returns(` 2,93,100 ha-1), net returns (` 2,20,364 ha-1) and BC ratio (4.03) was recorded in chilli + onion irrigated at 0.8 ETo. The nextbest treatment combination was chilli + groundnut irrigated at 0.8 ETo. Significantly lower net returns were recorded insurface irrigated chilli + onion - cotton intercropping system (` 98,785 ha-1).