Onion is a popular vegetable crop, which has been produced for its daily uses and economic benefits. Downey mildew caused by the fungus <i>Peronospora</i> <i>destructor</i> is among the most important yield-reducing factor in onion production. The effect of three different levels of plant population and fungicide frequency with two different fungicides was studied on downy mildew severity and yield of onion. Nineteen treatment of this Experiment included two fungicides mancozeb + metalaxyl and copper hydrox-ide, three different spraying interval with (10 days, 15 days and 21 days) and three level of plant population (0.71, 0.95 and 1.2 million plants/ha). The experiment was laid out in a randomized block design with three replications for two year at Fogera and for one year at Dera districts of South Gondar zone Ethiopia. Data on disease severity, bulb yield, bulb number and bulb size were recorded during the time of harvest. The price of bulb yield was assessed from the local market and the total price of the yield obtained from each treatment was computed on hectare basis. Input costs like seed, fungicides and labor were converted into hectare basis according to their frequencies used. Fungicides cost was estimated based on the price of the local market. Cost of the labor was in Birr per man-days; cost of spray and spray equipment to spray per hectare were also calculated. Based on the obtained data from the above mentioned parameters economic analysis was performed. The lowest disease severity was recorded in treatment were lowest level of plant population (0.71 million plant/hectare) spraying with fungicide mancozeb + metalaxyl within 15days interval. In this treatment bulb yield and bulb weight were the highest. The economic evaluation showed that the highest net benefit with acceptable marginal rate of return was obtained from T3 (0.71million plants/ha spraying with fungicide mancozeb + metalaxyl within 15days interval).