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. Both main and interaction effect of N and variety affected leaf area, number of productive tillers per plant, number of spikes, grain per spike and grain yield. However, days to 50% heading, days to 85% physiological maturity, plant height, straw yield, harvest index, thousand grain weight, grain size, grain protein content and germination energy were only affected by main effects of N levels and varieties. The higher (6170.70 kgha-1) grain yield were obtained with the combination of Ibon174/03 variety and application of 36 kg N/ha. But, the grain yield from such combination was not economically feasible a well as high protein content. 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.