The present study to estimate the factors affecting the marketed surplus of milk in Madhya Pradesh was carried out by collecting data from 80 producer households from two zones of Madhya Pradesh during 2020. The study revealed that milk production per animal was the most significant factor influencing the marketed surplus of milk followed by price of milk and operational land holding, respectively. Both in relative as well as in absolute terms, production and marketed surplus increased with the increase in the herd size implying positive relationship between production and marketed surplus of milk. Larger family size tends to decrease the marketed surplus as it is more consumed at producer level. This signifies that efforts should be made to improve the productivity of animals as states has highest indigenous cattle population whose productivity was found to be very low along with efficient marketing facilities to get remunerative prices.