This study examined the economic analysis of watermelon production in Sabon- Gari and Kudan Local Government Areas of Kaduna State. The data were collected through the administration of structured questionnaire to 162 randomly selected watermelon farmers. Data were analyzed using descriptive statistics, net farm income and stochastic frontier production function. The result of analysis showed that mean age of the farmers was 34 years. 46% of the farmers had adult education. The farmers cropped an average of 0.1 hectare and 52% of the farmers had between 1-5 years of farming experience in watermelon production. The result further revealed that labour accounted for about 62% of the total variable cost of production. The total variable cost amounted to N26, 126.78, while the total fixed cost amounted to N27, 095.28. The average gross income per hectare was N169, 769.46, while the net farm income was N93, 574.42 per hectare. The results revealed a mean technical efficiencies level of 86%. Implying that there was scope for increasing efficiencies by 14%.The factor that significantly influenced watermelon production in the study areas were farm size and fertilizer. Age, household size, education, experience, cooperative, credit and extension were inefficiently utilized and statistically significant at 1% with experience at 10%. The constraints associated with watermelon production were inadequate storage facilities, pest and diseases, high cost of labour, inadequate credit, inadequate extension services, lack of improved seeds, poor market price and flooding. It was recommended that farmers should be assisted to obtain credit facilities by reducing the bottlenecks associated with bank loans, farmers should form themselves into commodity associations so as to benefit from improved packages being offered by the government under the presidential initiative