Potato production plays an important role in improving household income and nutrition and thereby contributes to food security. Despite of this, the current productivity of the crop is below the potential. Low level of use of improved potato technology package is among the causes for low productivity. In this context, this study analysed the factors influencing adoption of potato technology package by smallholder farmers in Gurawa, Haramaya, Kombolcha, Meta, and Habro districts of Eastern Ethiopia. The analysis was based on a household survey conducted on 214 randomly selected potato growing households. A two-limit Tobit model was used to analyse the factors affecting adoption which is measured in an index computed from five components of the technology package. Variation in districts, access to irrigation, farm size, membership to cooperatives, and annual income of the households were found to significantly affect the adoption of potato technology package. Policy makers, planners and development practitioners are required to give due attention to these determinants in order to support smallholder farmers in production and productivity improvements from potato production.