The present investigation was undertaken in order to depict the economics of production of guava in Western Maharashtra. The study was conducted to examine resource use pattern, costs and returns in guava. The per hectare cost 'A', cost 'B' and cost 'C at the overall level, worked out to Rs. 48451.10, Rs.81324.33 and Rs.97168.82, respectively. The major items of cost were rental value of Rs.23332.45 (24.12%) and was followed by hired human labour Rs. 19681.84 (20.25%), family human labour Rs.15844.49 (16.30%), manures Rs. 8139.11 (8.38%) and amortized establishment cost Rs. 8105.02 (8.34%). However, the per hectare cost of cultivation in different size groups of holding was Rs. 101657.57, Rs. 99140.86 and Rs.90707.94 in small, medium and large groups, respectively.The present study was based on the primary data collected from 90 randomly selected guava growers from six villages Eight independent variables jointly explained the 70 per cent variation in output at the overall level. The production elasticity of human labour (X 1 ) was significant for small, large and overall level. The production elasticity of bullock labour (X 2 ) for small, medium and manure use per hectare (X 3 )was non-significant for all three size of group indicating excess use of manure. The factor expenses on nitrogen per hectare (X 4 ) were significant for small, large and overall group indicating positive impact on production of guava. The regression co-efficient of use of phosphorus per hectare (X 5 ) was nonsignificant for medium and large size group and significant at small and overall basis indicating positive impact on production of guava. The expense on plant protection (X 6 ) was found significant at overall level, while the factor expenses on irrigation (X 6 )was significant for all groups. The large size group was observed more efficient as compared to small and medium size groups since the B:C ratio was of the high order in large size group. The per hectare yield was highest (188.52 q) in large group followed by medium (181.27 q) and small (110.45 q). At the overall level, the per hectare yield was 160.08 quintals. The average per hectare gross return of guava was Rs.132567.29, Rs.140020.97 and Rs.147395.86 to small, medium and large groups, respectively. In the process of marketing channels viz., producer - pre-harvest contractor -wholesaler - retailer - consumer was observed to be the most popular. The channel wise per quintal cost of marketing was highest (Rs. 286.34) for channel-I followed by channel-II (Rs. 228.23) and channel-III (Rs.165.65). The channel wise price spread was worked out and the marketing margins worked out for channel- I, II, III. The price paid by consumer per quintal was highest (Rs.l199.26) in channel-I and lowest (Rs.557.71) in channel-III. The channel wise price spread was worked out and the marketing margins worked out for channel- I, II, III. The maximum net price received by producer in channel-I (Rs.514.66) and minimum in channel-III (Rs.398.26).