The present investigation was undertaken to study marketing costs, margins and price spread and problems faced by green chilli cultivators in marketing of green chilli. A multistage purposive and random sampling procedure was used to select district, tehsils, villages and farmers from the district. A sample of 57 farmers i.e., 10 percent for each category of each village was taken for the study. Muhana mandi was selected purposively for studying the nature and magnitude of costs and margins in the marketing of green chilli in Jaipur. From the market, 5 village traders, 10 wholesalers-cum-commission agents and 15 retailers were selected for study. Marketing costs, margin and price spread were estimated by using costs incurred by intermediaries, absolute margin, percentage margin and constraints in marketing of green chilli were measured by Garrett’s ranking method. Results revealed that the farmers adopted three kinds of marketing channels; channel-I (Producer → Village trader → Wholesaler-cum-commission agent → Retailer → Consumer), channel-II (Producer → Wholesaler-cum-commission agent → Retailer → Consumer) and channel-III (Producer → Consumer). Total marketing costs in sale of green chilli was ` 500.40 and ` 491.34 per quintal in channel-I and channel-II, respectively in the study area. Marketing margins of wholesaler-cum commission agent was ` 205.89 and ` 289.05 per quintal by retailer. Producer’s share in consumer’s rupee in sale of green chilli was 69.68 per cent, 74.02 per cent and 100 per cent in village, regulated market and in direct sale to consumer. The key problems of chilli farmers in marketing of green chilli were low price of green chilli, lack of good storage facilities, fluctuations in market price, difficulty in maintaining quality standards and high transportation cost etc. For the lucrative production, the productivity of the crop needs to increase and price stabilization of the green chilli and elimination of market intermediaries may be induced.