A field experiment was conducted during 2013-14 and 2014-15 to study the effect irrigation level and mulches on yield and economics of drip irrigated summer groundnut (Arachis hypogaea L.) at the AICRP on Irrigation Water Management, VNMKV, Parbhani (M.S.). Soil of the experimental plot was clayey in texture and slightly alkaline in reaction. It was medium in total nitrogen and available phosphorus and fairly high in exchangeable potassium (K2O). The experiment was framed out in Split plot design with four irrigation level ( I1 - Irrigation at 0.6 PE, I2 - Irrigation at 0.8 PE, I3 - Irrigation at 1.0 PE and I4 - Irrigation at 1.2 PE ) in main plots whereas four mulches [M1 - Black polythene mulch with drip, M2 - Transparent polythene mulch with drip, M3 - Soybean straw mulch with drip and M4 - Control (drip) ] were assigned in sub plots. Results of the experiments revealed that the irrigation at 1.0 PE provided congenial conditions for better growth resulting in to significantly higher number of pods per plant, weight of pod per plant, dry pod yield and haulm yield per hectare under 1.0 PE than 0.6, 0.8 and 1.2 PE. Irrigation at 1.0 PE recorded higher net profit of ` 98,004 /ha and benefit cost ratio 2.16 respectively. The yield attributing characters like number of pods per plant, weight of pod per plant, dry pod yield and haulm yield per hectare was maximum under transparent polythene mulch as compared to rest of the mulches.