Abstract: Groundnut is the major cash crop for Mahabubnagar district. It is important to know the present scenario of adoption of improved cultivation practices to get to know the adoption gaps and knowledge gaps resulting in lower yields and higher cost of cultivation. The study indicated that majority of the sample groundnut farmers were in the range of 31 – 60 years from this it could be inferred that the farmers practicing groundnut are middle aged and having small family norm, the average land holding of groundnut farmers was 2-5 acres, and majority of farmers were illiterates followed by the education level upto primary and secondary school level only and in choosing wider spacing had highest adoption gaps and weed management, water management, Organic manure application and pesticide management fertilizer management, and in choosing plant variety had highest knowledge gaps. The economic analysis indicated higher cost of cultivation in using seed rate, pesticides, and harvesting areas. These have to be addressed through awareness creation programmes and proactive policies that enable ease in procurement of necessary inputs and facilitating environment for adoption of improved cultivation practices, and reducing cost of cultivation , thereby increasing profits per unit area resulting in improvised livelihoods of the farmers.