A study was conducted on economics of finger millet production and marketing in peri urban area of Pokhara valley of Nepal in 2006 AD. The sampling frame constituted 154 and 193 producers of Kalabang and Begnas study sites respectively. For the study, 30 percent of the population that is 47 from Kalabang and 58 from Begnas was selected by using simple random sampling technique. Total of 10 finger millet traders were selected for studying the marketing aspects of finger millet. Household survey was carried out to collect the primary information from the selected finger millet producers and traders by using the pre-tested interview schedules. The mean area allocated by the sampled households to finger millet cultivation and its productivity were declining but the price was increasing over time at both the research sites. Lack of other alternatives was the major reason for cultivating the finger millet in bari lands of the farmers. The mean quantity of finger millet use was higher (147.99 kg/household) in Kalabang than Begnas (86.81 kg/household). The cost of production (NRs. 23847.60/ha) and gross revenue (NRs. 24638.23/ha) were significantly higher at Kalabang than in Begnas.