The present study attempts to estimate the extent of contributions of various factor to the yield gap in cotton in Raichur district (Karnataka), with the help of decomposition analysis. The study was based on the cross section data from 120 randomly selected cotton growing farmers, besides the relevant demonstration data in the study area. The data pertain to the crop year 1987-88. the estimated yield gap in cotton ind the study area was found to be more than 50 per cent. Inappropriate techniques of production adopted by large farmers and sub-optimal input use by small farmers were found to contribute significantly to the estimated yield gap in cotton. Intensification of extension education activities for larger farmers and liberal credit policy to acquire the needed critical inputs for small farmers would help in exploiting the yield potential in cotton in the study area.