Background: Capsicum is one of the major cash crops of Himachal Pradesh. Marketing of their produce has always been considered the major constraint by the farmers of this region hence it necessitated the present study to investigate the price spread and marketing efficiency of capsicum grown in Kandaghat block of Solan district which is a leading producer of capsicum in Himachal Pradesh.Methods: A multistage random sampling technique with purposive selection of Kandaghat block was followed. Primary data was collected from 73 farmers of 12 different villages in Kandaghat block of Himachal Pradesh and also form 10 traders and other intermediaries operating in nearby markets and APMC. The data collected was analyzed by calculating price-spread and marketing efficiency.Result: Most of the farmers sold their produce in local markets while few farmers sold their produce in distant markets to fetch better price. The average marketing cost was found ₹ 145.78 per quintal and share of producer in consumers’ rupee was observed to be 66.43 per cent. Most of the marketing cost was found to be borne by farmers and least by the retailers. Marketing efficiency was found to be of 1.97.