The main objective of the study is to estimate technical efficiency of biogas plants in Bangladesh by using data envelopment analysis (DEA). The study employed farm level cross section data from five major biogas producing areas of Bangladesh. The non-parametric DEA approach applied to estimate the technical efficiency of biogas plants in the study areas. This paper developed a theoretical framework of DEA approach. The average technical efficiency of biogas plants in Bangladesh is 86 percent. This indicates a good potential for increasing biogas production by 14 percent with the present technology and level of inputs. Only five farms achieved efficient score 1.00 and remaining fifty five farms having chance to promote their efficiency score with the help of peer groups through DEA approach. Peers groups of perfect efficient farms could be playing a vital role on inefficient farms to direct their inputs for efficiently producing biogas.