The current study is planned to investigate the impact of micro finance on the profitability of small agriculture farmers that how does micro finance influence their profitability. The objective of the study was to investigate the function of micro finance in generating profits for the small agriculture farmers of Tehsil sadder Bahawalpur. The sample of the study includes 150 small agriculture farmers of Tehsil sadder Bahawalpur those who were taking micro finance services from different micro finance and commercial banks in Bahawalpur like, The First micro finance bank, Zari Tariquati bank Limited (ZTBL) and National Rural Support Program (NRSP) bank and Khushhali bank. Personal interviews were conducted with the beneficiaries of micro finance services who are getting micro finance services from different financial institution with the help of open ended questionnaire. A pilot study was also conducted and statistical techniques like variance inflation factor (VIF), Normality test, Multicolenerity and Heteroskedasticity tests were applied through checking residual diagnostics in E views software for the validity and reliability of the data and instrument. During interviews data for three years was collected from respondents and for analysis purpose fixed and random effect techniques were applied on this panel data.Results of the study explain that micro finance has significant impact on the profitability of small agriculture farmers and there is a positive relationship between micro finance and profitability of small agriculture farmers. Houseman test was conducted to decide the appropriate analysis techniques from fixed and random effect for this particular study which prove that random effect technique is appropriate for this particular panel data study.