Granular urea is technologically and physically modified normal urea that is used in MV paddy production in Bangladesh. The present study estimates the impact of granular urea and efficiency of resource use in MV paddy production in Bangladesh using primary data. Shimlagachi village of Sharsha upazila in Jessore district was purposively selected because a large number of farmers use granular urea along with traditional urea in MV paddy production. The findings of the study indicate that significantly less amount of granular urea is required per hectare for MV boro and aman paddy production than traditional urea. Moreover, the yield of MV boro and aman paddy is markedly higher with application of granular urea. On average, production cost per hectare of MV boro and aman paddy cultivation is less with application of granular urea. Consequently, net profit is significantly higher. The results of Cobb-Douglas production function, marginal value products (MVPs) and marginal factor cost (MFC) ratio tests show that the farmers do not use inputs efficiently and optimally in MV boro and aman paddy cultivation. They use more granular urea than traditional urea in MV boro paddy cultivation.