A study was under taken to analyse the productivity of resources in milk production in the state of Tamil Nadu. From the four sample districts (Kanchipuram, Erode, Nagappattinam and Thoothukudi), 120 dairy farmers from 12 villages (10 farmers from each village) were selected by simple random sampling technique. In all, a total sample size of 480 dairy farmers was selected for the study. Information relating to various aspects of dairy farming was collected from the selected farmers by survey method with a well-designed and pre-tested interview schedule. The data collected were tabulated and analysed with a view to achieve the objectives of the study. The results of the Cobb-Douglas milk production functions showed that the co-efficients of all the resources viz.,concentrate, green fodder, dry fodder and veterinary charges except labour were positive for all the function, while the labour variable had a negative sign for all the functions.The efficiency of allocation of the resources involved in milk production was studied by comparing the MVP (Marginal value product) with the MFC (Marginal Factor Cost) of each factor of production. The MVP-MFC ratio was more than unity for concentrate (1.59), dry fodder (1.96) and veterinary care (37.24), indicating that these resources were under utilized, and there was scope for enhancing the use of these resources in the study area. The results also showed that the ratio was less than unity for green fodder (0.93). The resource wise results indicated that the resource concentrate was more than unity and this resource was under utilized in all the four districts. The variable veterinary care showed a higher MVP-MFC ratio for all the four district which means that this resource was under utilized in the study area.