Groundnut (Arachis hypogaea L.) is an important cash crop for smallholder farmers in western Ethiopia. However, the yield of the crop is very low mainly because of strong soil acidity and poor soil fertility management. A study conducted to evaluate the effect of lime and mineral phosphorus fertilizer on yield components and yield of groundnut. The treatments consisted of three phosphorus rates (0, 46 and 92 kg P 2 O 5 •ha −1 ), three lime rates (0, 6, and 11 ton lime•ha −1 ), and three groundnut varieties (local cultivar, Werer-961, and Werer-963) was laid-out as a randomized complete design in a factorial arrangement with three replications. The corresponding rates of phosphorus applied per pot of soil (7 kg) amounted to 0, 107 and 215 mg kg•soil −1 and those of lime amounted to 0, 14, and 26 g kg•soil −1 . The analysis of variance showed that phenological characters, yield, and yield components significantly affected by interaction of variety, phosphorus, and lime. The highest dry pod yield produced by Werer-963 (2 kg dry pod yield•pot −1 ) in response to the application 11 t•ha −1 lime and 46 kg P 2 O 5 •ha −1 . However, Werer-961 produced medium (1.5 kg dry pod yield•pot −1 ) at 11 t•ha −1 lime and 92 kg P 2 O 5 •ha −1 and the local cultivar produced minimum (1 kg dry pod yield•pot −1 ) at the application of 11 t•ha −1 lime and 92 kg P 2 O 5 •ha −1 . In terms of phosphorus yield efficiency index, Werer-963 was highly efficient (index of 1.71), and Werer-961 was moderately efficient (index of 0.6). However, the local cultivar was inefficient (index of 0.04). It is at, in acidic soil of the study area Werer-963 is the best to be cultivated with application of lime 11 t•ha −1 and 46 kg P 2 O 5 •ha −1 fertilizer, followed by Werer-961. The results of this pot experi-How to cite this paper: Dessalegn, A. (2023) Effect of Lime and Phosphorus on Yield and Yield Components of Groundnut Varieties [Arachis hypogaea L.] on Acidic Soil in Nedjo District, Western Ethiopia.