This paper investigates factors influence technical efficiency in groundnut production systems among farmers in Mandalay division and Magway division, Myanmar. Mandalay and Magway divisions are regions where the groundnut productions have grown the largest areas annually in Myanmar. Primary data were used in the analysis of data. The analytical tools include descriptive statistic and stochastic frontier production function by using the maximum likelihood estimation (MLE). MLE is applied on a crosssectional of 282 sampled farmers during 2006-07 cropping season. The efficiency measure is regressed on set explanatory variables which include seed (kg ha1), area (ha), amount of chemical fertilizers (kyat/ha), amount of farmyard manure (kg ha1), cost of insecticides and pesticides (kyat/ha), labor (manday), access to institutions, and access to government services. The result shows that the mean efficiency in groundnut production is about 0.59. It means that it can be rise the groundnut production of Myanmar in this areas about 0.41 (41%) to produce at efficiency level.