The study was carried out to analyse the profitability of groundnut production in Northern Part of Taraba State. The objectives of the study were to: describe the socio-economic characteristics of groundnut farmers, estimate the cost and returns associated with groundnut production and identify the constraints faced by groundnut farmers in the study area. Data were collected with the aid of structured questionnaire administered to 150 randomly selected farmers in the study area. Data generated from the questionnaire were analysed using descriptive statistics and budget techniques. Results revealed that most farmers 75% are young, mostly females (57.50%) and educated (75%). It also showed that the total revenue (TR), gross margin (GM) and net farm Income (NFI) per hectare were N100,818.00, N42,422.00, and N41,172 respectively while the Gross margin per naira invested and net farm income per naira invested were N0.73 and N0.69 respectively. The problems faced by groundnut farmers include: pest and diseases infestations, insufficient contact by extension agents, shortage of labour, low groundnut prices and inadequate credit facilities among others. The study also recommended that government should re-introduce commodity board and advised that farmers should form cooperatives groups in order to facilitate access to modern farm inputs as well as credit facilities from lending institutions to the farmers in study area.