Faba bean (Vicia faba L.) is one of the most important pulse crops grown by farmers in Hula Woreda, southern Ethiopia. However, the actual farm yield of 1.2-1.6 t ha-1 is much lower than the potential yield, which is 1.5-3.5 t ha-1 on farmers’ fields under improved management and 2-5 t ha-1 in research station. This lower yield is due to poor management of the crop including lack of proper weed control, planting methods and fertilizer application. Hence, a field trial was conducted in Hula Woreda, during 2011 cropping season to determine the effect of integrated crop-management packages on yield and yield components of Gebelcho and local faba bean varieties. Varieties were factorially combined with nine management packages in RCBD design with three replications. Varieties were significantly different for days to flowering, days to maturity, leaf area index, nodule number, nodule dry weight, crop biomass, grain yield and yield components. Variety Gebelcho exceeded the local variety by 11% for leaf area index, 14% for nodule number, 21% for nodule dry weight, 7% for crop biomass, and 24% for grain yield. Gebelcho also gave more number of pods plant-1, number of seeds pod-1 and 100 seed weight than local variety. Varieties did not differ significantly for crop stand count, plant height, weed count and weed biomass. Management packages differed significantly for crop growth attributes, weed count, weed biomass, grain yield and yield components. More number of pods plant-1, number of seeds pod-1, 100 seed weight and grain yield were obtained from the improved (package 1) than control (package 9). Economic analysis showed that, Gebelcho (improved cultivar) and package 1 (row planting, twice weeding and application of 100 kg DAP ha-1) gave higher net benefits of Birr 12400 and 12715 ha-1 with 980% and 109% marginal rates of return, respectively, and these were identified to be the best options.