Abstract:A field experiment was conducted during Kharif season of 2016-17, 2017-18 and 2018-19 to find out the optimum spacing for growth, yield and to study economics of arborium cotton in clayey textured soil at Cotton Improvement Project, Mahatma Phule Krishi Vidyapeeth, Rahuri, (Maharashtra). The experiment was laid out in randomized block design with nine treatments viz., 45 x 15 cm2, 45 x 30 cm2, 45 x 45 cm2, 60 x 15 cm2, 60 x 30 cm2, 60 x 45 cm2, 90 x 15 cm2, 90 x 30 cm2 and 90 x 45 cm2 in three replications. The pooled result of experiment indicated that the spacing 45 cm x 15 cm2 observed significantly maximum plant height (120.74 cm) than other spacing’s. However it was at par with spacing 60 x 15 cm2 (117.68 cm) at harvest. The spacing 90 x 15 cm2 recorded significantly higher number of bolls plant-1 (24.37) and average boll weight (4.60 g) than rest of spacing’s. Whereas, the spacing 45 x 15 cm2 recorded significantly higher seed cotton yield (18.30 q ha-1) than rest of all other spacing’s and also observed 24 % higher seed cotton yield than normal spacing of 45 x 30 cm2. The spacing 45 cm x 15 cm2 recorded highest gross monetary returns (Rs.93557 ha-1), net monetary returns (Rs. 39297 ha-1) and B:C ratio (1.71) than rest of spacing.