A field experiment was carried out during the 2017 cropping season at Holetta Agricultural Research center to determine the effect of nitrogen fertilizer levels on grain yield and quality of malt barley (Hordeum vulgare L.) varieties at Wolmera district, central highland of Ethiopia. The treatments include a factorial combination of four nitrogen levels (0, 18, 36, and 54 kg Nha-1 ) and four malt barley varieties (Holker, Ibon174/03, HB-1963, and Explorer). The experiment was laid in a randomized complete block design with three replications. The higher (6170.70 kgha-1 ) grain yield were obtained with the combination of Ibon174/03 variety and application of 36 kg N/ha. The highest (130kgha-1 ) grain N uptake were recorded with combination of HB-1963 variety and application of 54 kg N/ha rates, while the lowest (47kgha-1 ) grain N uptake were obtained with combination of control treatment and Explorer variety. The highest nitrogen use efficiency (327.03%) was recorded with the combination of 18 kgha-1 N fertilizer along with Ibon174/03 variety. The highest net benefits (49,015.45 EBha-1 ) with marginal rate of return (136%) were obtained from the combination of 36 kg Nha-1 with Ibon174/03 variety. Therefore, application of 36 kg Nha-1 fertilizer rates and Ibon174/03 variety was found to be better both agronomically and economically feasible for malt barley production in Wolmera area.