The study uses data collected in 2009/2010 irrigated crop production year from a total of 130 farm households selected from three PAs of Fogera woreda of the Amhara Region, Ethiopia. The purpose of the study is to estimate Technical and Allocative Efficiency and to identify principal factors that cause efficiency differentials. Data Envelopment Analysis (DEA) was used to estimate technical and allocative efficiency of smallholder farmers in irrigated vegetables production. The DEA model shows that the mean technical, allocative and economic efficiency of farmers in the production of vegetables are 0.83, 0.51 and 0.42 respectively. The study suggests that attention must be given to access to credit, extension service, training of household head, and education which are found to be significant determinants of efficiency level. The result also indicates more fragmented land increases cost of production.