In Nepal, dragon fruit farming is promising but faces limited operation due to its high initial cost during the establishment years. However, its market demand and export potential could provide an economic opportunity for farmers. Here, dragon fruit farmers were categorized as 39 small-scale and 25 large-scale farmers based on an average farm size of 20 kattha (6772.6 m2). A total of 64 dragon fruit farmers were selected randomly from different clusters through a multi-stage sampling technique. The results revealed that the average cost of dragon fruit production per kattha during the establishment year was NRs 259098.58 (1941.89 USD). The gross benefit was NRs 540972.00 (4054.98 USD) in a large-scale farm and NRs 402928.33 (3019.87 USD) in a small-scale farm. Also, an average BC ratio of 1.87 indicated a profitable farming business. Provision of extension services and cooperative engagement were significant among socioeconomic characteristics for the farm category. Land preparation, manure, labor, fertilizers, and plant protection costs were substantial parts of the total cost incurred in dragon fruit cultivation. Pillar and plant protection costs were positively significant in the production function analysis, and the cost of irrigation was negatively significant to gross returns. These findings will encourage the adoption of dragon fruit farming by providing farmers with essential information on production costs and profitability. Market stability, training, extension, and subsidies should be top priorities in authoritative management.