The study investigated the marketing practices, channels of sheabutter distribution and performance using multi stage sampling techniques to select three local government area for the study in Oyo State. The results showed about 91% of the respondents were female, the average age of the respondents was 35.5 years. Most (92.5%) of the respondents were married with average household size of 8 members. Marketing efficiency was 135% which implies that the respondents covered the cost of marketing and made a margin above 100%. Unavailability of sheabutter due to deforestation and credit unavailability were the major constraints faced by sheabutter marketers. Furthermore, Household size (p=0.005), marketing experience and member of organization (p=0.001), source of shea butter (p=0.01) and credit availability (p=0.005) were factors influencing marketing efficiency of the respondents. The study concluded that sheabutter marketing was a profitable enterprise in the study area. The study recommended that there should be proper awareness on the prospect of sheabutter business (either for local use or exportation) among young people; this will be an avenue to alleviate the scourge of unemployment in the country.