Technological change is one of the most effective ways to make improvements in crop yields. However, lack of ability or willingness of the producers to adopt technology and other institutional barriers cause slow adoption. Technological adoption for value added crop production in Pakistan is making progress with the introduction of tunnel technology. The present study investigated the technical efficiency and productivity of capsicum crop (Bell Pepper) grown under the tunnels in Punjab, Pakistan. The farm data were collected from 150 farmers through an interview questionnaire. The stochastic frontier analysis was used to measure the productivity and technical efficiency of capsicum crop grown under tunnels. The results of the study revealed that the average technical efficiency of sampled capsicum farms under tunnels was around 83%. The farmers can optimize the production frontier of the capsicum cropping system by overcoming the existing level of technical inefficiencies. The number of irrigations, pesticides, labor hour, land preparation and seed have been important inputs for capsicum cropping system production and technical efficiency among farmers in the study area. The access to credit and farmer’s education have the positive relationship with technical efficiencies. Lack of credit and education cause significant production inefficiency.