This study analyzes the performance of groundnut production in Bangladesh in the 1990s and 2000s, both at the district and national level. Production performance was measured in terms of growth and variability. Annual compound rate of growth was estimated to know the growth performance. Cuddy-Della Valle index was used to estimate variability. Analysis showed that both area and production of groundnut at the national level declined in the 1990s but production increased afterwards. In the late 2000s, groundnut production increased by 31% although area under groundnut was same as in the late 1990s. Increase in groundnut yield (by 373 kg/ha or 32%) contributed towards increase in groundnut production in the late 2000s. In the late 2000s (TE2009/10), top five groundnut producing districts (Noakhali, Dhaka, Faridpur, Kishoreganj and Pabna) accounted for 59 percent of area and 55 percent of production. In the 2000s, Bangladesh achieved high annual growth (5.0% or more) in groundnut production at the national level and in nine districts (Faridpur, Tangail, Barisal, Jessore, Kushtia, Dinajpur, Pabna, Rangpur and Chittagong H.T.). On the other hand, variability in groundnut production in the 2000s increased insignificantly at the national level while three districts (Sylhet, Mymensingh and Tangail) experienced statistically significant increase in variability in groundnut production. Increase in variability in groundnut production was mainly due to the increased variability in area under groundnut indicating that the crop was expanded to less suitable areas. The study concludes that groundnut breeders should focus more on yield increase rather than on reduction in variability in yield. Increase in yield potential through research is expected to have higher production and profit to the farmers and thereby, encourage farmers to allocate more area under groundnut cultivation.