Coffee is the major source of income for smallholder farmers and is a leading export crop for Ethiopia. Even though a great proportion of coffee production comes from smallholder farmers with farm sizes below two hectares, productivity in these farms remained very low. To identify the causes of low productivity this study identified the technical efficiency level of smallholder coffee farmers and the factors that influence technical efficiency in coffee production in Dale Woreda, Sidama Region, Ethiopia using the stochastic frontier approach. In addition, this study attempts to determine whether the agricultural and some of the socio-economic characteristics of farmers can influence the efficiency of their technical efficiency coffee production. By exploiting the information that was gathered in a survey of 150 farmers selected randomly from three kebeles using stratified random sampling in the woreda, these farmers' technical efficiency was estimated using a trans-long-type stochastic frontier model and two-limit Tobit model. The mean technical efficiency of the study area is 65.43%. The results suggest that, factors like the land cover, labor in hours, compost used as well as their cross product and the interaction effects of labor with sufficient compost used, labor with proper capital-labor force, and minimum cost for agricultural equipment and composite with proper capital significant determinants of coffee technical efficiency in the area. Furthermore, variables like educational status, age of the coffee tree, membership of cooperative associations, size of livestock holding, presence of additional off-farm incomes, and age of household head are significant predictors of the technical efficiency of farmers in the study area. Thus, by improving their education, improving the frequency of extension service, increasing livestock holdings, improving membership in cooperative associations, and replacing the aged coffee tree, someone can improve his/her technical efficiency directly and coffee production indirectly.