Traditional rangeland-based livestock husbandry constitutes the foundation of livelihood for rural and nomadic communities in Iran and plays a key role in ensuring food security, milk and meat production, and conservation of natural ecosystems. Despite this strategic position, most experts believe that this system currently lacks economic justification, and factors such as recurrent droughts, overgrazing, and rangeland degradation have contributed to its decline. Economic evaluation of the traditional livestock system and awareness of its profitability and productivity can aid in predicting future development trends and planning for enhanced economic efficiency. This research aimed to estimate and analyze the production function and technical efficiency in the pastoral units of Sahand rangelands. For economic evaluation, 45 pastoral units were selected through stratified random sampling based on the number of users, area, livestock numbers, and accessibility. In the summer of 2020, questionnaires were completed for 205 households. The Cobb-Douglas production function and technical efficiency were estimated using Data Envelopment Analysis (DEA) in DEAP software. In this study, the average technical efficiency with Constant Returns to Scale (CRS) was 0.984, with Variable Returns to Scale (VRS) was 0.996, and scale efficiency was 0.988. Out of 45 pastoral units, 14 exhibited scale inefficiency and can increase efficiency by adjusting their operational scale. Fodder, barley, and stubble inputs were identified as the most significant inputs in the production function. Production elasticity for all inputs ranged between zero and one, indicating their placement in the second region (the economic region of production). According to the significant variables in the production function, it is suggested that support facilities be provided for supplementary livestock feeding. Considering recent droughts and fodder shortages, price control policies for fodder and its cultivation in low-yield drylands are essential.