In the agrarian and largely subsistence economy of Bangladesh, poultry plays a crucial role in supplying nutritious food, generation of income and employment opportunities. This study attempted to conduct an economic analysis and resource use efficiency for Sonali poultry production. Five villages of Gazipur Sadar Upazila under Gazipur district namely: Vadun, Baroibari, Basugaon, Noipada, Kudabor were puposively selected for the present study. Data were collected from 60 Sonali poultry farmers. Both descriptive and functional analysis was employed to achieve the objectives of the study. Cobb- Douglas production function and resource use efficiency were estimated for the study to estimate the contribution of major inputs to the production of Sonali poultry. The study revealed that all of the Sonali poultry farmers were in the age group of 14 to 64 years and 93.0 percent Sonali poultry farmers were literate in the study area where the highest number (55 percent) of farmers had completed their secondary education. The major findings of the study was that total cost for 1000 birds were estimated at Tk. 120613 per batch. Variable cost constituted the major part of the total costs. Average variable costs for 1000 birds stood at Tk. 115432 where average fixed cost for 1000 birds was estimated at Tk. 5181 per batch only. Average gross margin and average net returns for 1000 birds was estimated at Tk. 57240 and Tk. 52059 per batch. An average gross return for 1000 birds was estimated at Tk. 172672 per batch. Benefit Cost Ratio was estimated 1.4 for Sonali poultry production. Six explanatory variables like day-old-chick cost, feed cost, electricity cost, veterinary and medicine cost, labor cost and litter cost were considered for Cobb-Douglas production function. Most of the variables included in the model such as veterinary and medicine cost, labor cost and electricity cost had positive and significant impact on Sonali poultry production. Resource use efficiency was calculated by the ratio of marginal value product and marginal factor cost. The result of resource use efficiency showed that by increasing the use of day-old-chick, feed cost, electricity, litter, labor and veterinary variables, it would possible to increase the production of the Sonali poultry. The study also identified some of the major problems associated with Sonali poultry farming and suggested some possible steps for overcoming these problems. Finally, on the basis of the findings of the study, some recommendations were made for the development of Sonali poultry farming in Bangladesh.