The study aims to find the cost and returns of banana cultivation and also to find the efficiency of marketing banana in Srivaikuntam and Tiruchendur taluk of Tuticorin district. It is understood that the banana farmers produced 181.61 kgs of banana and earned Rs.7371.53 per acre while their net returns per acre were Rs.4,760.81. The cost analysis reveals that per acre total cost, that is operational cost of cultivation for banana farmers, worked out to Rs.2338.42. Next to human labor, the amount spent on the use of chemical fertilizers occupied the major portion in the total cost of production.  It came behind the cost of farm manure, cost of irrigation, pesticides, seed cost and bullock labor.  Thus, it is inferred from the analysis that the banana farmers were found more efficient, both cost-wise and return wise. It can be observed that the ratio of Marketing Efficiency (ME) was more or less equal in both Srivaikuntam and Tiruchendur taluks. It was worked out to 2.94 in Srivaikuntam and 2.91in Tiruchendur. It indicates that there is no difference regarding the marketing efficiency between two taluks. It is to be noted that much of the variations in the shares of the producer-sellers as well as retailer were explained by the consumer’s price as indicated by the values of R2 which ranged from 0.91 to 0.94 per cents. The F-values shoe that the regression model is statistically significant at one per cent level. The study shows that the important marketing problems were inadequate credit facilities, high commission charges, high marketing cost, lack of transport facilities and lack of storage facilities which were ranked as first, second, third, fourth and fifth respectively.