A field experiment was conducted during kharif season of 2005 and 2006 to find out the plant density and fertility levels of kharif groundnut (Arachis hypogaea) – pigeon pea (Cajanus cajan) intercropping system. Growing of groundnut as sole crop recorded higher pod yield (1490 kg ha-1) over groundnut in intercropping system. The highest pod yield (889 kg ha-1) of groundnut among the intercropping system was obtained with the treatment received 100 % of both RDF and plant density of groundnut and pigeon pea respectively. Which was closely followed by T9 (850 kg ha-1), T2 (846 kg ha-1), T11 (828 kg ha-1) and T10 (825 kg ha-1) and they were statistically at par among each other. Growing of pigeon pea as sole crop recorded higher grain yield (1584 kg ha-1) over pigeon pea in intercropping system. Among the intercropping system the maximum pigeon pea grain yield was found in T1 (1013kg ha-1) which was at par with T10 (978 kg ha-1), T11 (950 kg ha -1), T2 (946 kg ha-1), T9 (939 kg ha-1), and T5 (903 kg ha-1). Among the cropping systems, intercropping of groundnut with pigeon pea resulted in maximum groundnut equivalent yield (2155 kg ha-1) in T1. Among the intercropping systems, groundnut with pigeon pea in 4:2 row proportions with 100% both plant density and RDF in all the crops was most remunerative in respect of net return (Rs.28400) and economic return: cost ratio (2.85).