Onion is a warm-season vegetable crop grown in Ethiopia. The productivity, however, is low on farmers field as compared to its recorded potential yield on research station. So, participatory on-farm demonstration and evaluation of improved onion varieties with their associated production practices was conducted in Adama, Lume and Adamitulu-Jidokombolcha (AJ) districts in the Central Rift Valley area. Nafis and Nasik Red were compared with Bombay Red, the check. Thirty-seven onion grower farmers were purposely selected and hosted the demonstrations on 9.25 hectares. Nafis and Nasik Red performed higher than the check yielding 29,757 kg/ha and 27,676 kg/ha on average respectively. The farmer-based practices yield gap found to be 9,238 kg/ha and 6,931 kg/ha for Nafis and Nasik Red respectively. Given, equal investments per unit area to produce the onion varieties, Nafis gave higher profit. Similarly, Nafis was the most preferred onion variety compared to Nasik Red and Bombay Red because of its higher yield, deep red color, medium bulb size, tolerance to disease, pungency, market preference and longer shelf life. Nafis and Nasik Red produced higher financial returns and preferred by farmers. Hence, the varieties need wider scaling though concerted effrorts of agricultural development partmets in the study area and in similar agro-ecologies to enhance onion production and productivity in Ethiopia.