The field experiments were conducted for consecutive three years to assess the crop performance and economics of micro sprinkler system for groundnut (GG-2) during summer season (Feb. to May). Total six treatments having different water application levels based on IW/CPE like 0.6, 0.7, 0.8, 0.9, 1.0 and 1.2 were selected. The lowest pod yield of 1471 kg/ha and highest pod yield of 2550 kg/ha could be obtained at the IW/CPE of 0.6 and 0.9 respectively requiring 523 and 789 ha.mm/ha of irrigation water respectively. The treatment of IW/CPE of 0.8 wasfound statistically better one having the highest water use efficiency of 3.406 kg/ha.mm. The IW/CPE of 0.8 was found most economical water application level. Also, in case of excess water supply (IW/CPE=1.2) and deficit water conditions (0.6), the micro sprinkler wasnot that profitable.