On-farm factorial experiment was conducted during the main cropping season of 2015/16 in Bahir Dar Zuria District, at Sebatamit village to study the effect of planting density and time of safflower relay intercropping in tef on growth and yields of components crops. Factorial combinations of three time of safflower relay intercropping (42, 57 and 72 days after tef sowing DATS), two inter-row spacing (40 and 60 cm) and two intrarow spacing (20 and 30 cm), and two sole cropping of tef and safflower were laid out in randomized complete block design (RCBD) at three replications. "Kuncho" Tef and "Quihar" safflower cultivars were used as experimental planting materials. The ANOVA results showed that, except grain yield, all growth and yield parameters of tef were not significantly affected by main and interaction effects of planting density and time of safflower relay intercropping in tef. The main and interaction effects of time of relay cropping, inter-and intrarow spacing of safflower were significant on most growth and yield components of safflower crop. The highest grain yield of safflower was recorded in the treatment combination of relay intercropping after 42 days of tef sowing and 60cm by 20cm inter-and intra-row spacing of safflower (1307.19k.g/ha). Indeed, relay intercropping of safflower after 57 days of tef sowing had also similar effect on safflower grain yield as that of 42 days. The lowest grain yield of safflower was recorded in the treatment combination of relay cropping after 72 days of tef sowing and 60cm by 20cm inter-and intra-row spacing of safflower (163.39k.g/ha). The highest land equivalent ration-LER (1.79) and monetary advantage index-MAI (34563.28 birr ha-1) were obtained from the treatment combination of 42 DATS and 60cm by 20cm inter-and intra-row spacing of safflower. The result clearly showed that, with relay intercropping of safflower in tef, it is possible to produce additional yield of safflower without significant reduction in tef yield. As a result of this, safflower relay intercropping after 42 days of tef sowing, after three tef row with 20cm intra row spacing can be recommended as an efficient relay intercropping system to be used by the farmers around the study area.