Automatic bale wagon for alfalfa and straw bales are machines which is used in mechanized bale gathering and handling operations. Several works presented by various researchers were reviewed and finally the best plan was selected for design, fabrication and evaluation. In Order to design different units and elements of this machine, some physical and rheological properties of alfalfa and straw bales were determined. The coefficients of friction for alfalfa and straw bales on steel, wood and concrete surfaces at three levels of perpendicular loads were determined. A confined compression test for determination of bending strength by the deflection of a two-support beam for two levels of moisture content dry (6.12% and 7.59% wet based, respectively for straw and alfalfa) and wet (11-12% and 15-20% wet based, respectively for straw and alfalfa) for alfalfa and straw bales was performed. In this study, the influence of the material type, modulus of elasticity and required energy was investigated. The bale pickup unit comprises a pair of normally vertical side walls jointed to a rear wall to form a U-shaped structure open at its forward end of bale wagon. The lower forward extremities of the side walls are provided with diverging deflector arms which serve to guide the bales into the U-shaped frame. At the rear of the bale loader an endless conveyor chain is positioned vertically along the rear wall of the framework so that chain extending around two sprockets on lower and upper shafts. Array of lugs or fingers attached on conveyor chain were used in engaging device for lifting bales upwardly. The chain is inclined rearward by an angle of 15 degrees, the inclination helping to maintain a bale being elevated in contact with the elevator. An electro motor was used to actuate the sprocket for rotation of the conveying chain. A bale shoe or holder is pivotally mounted at the forward frame structure which prevents the bales from falling forward as they are being elevated. Because of bale deformation during passage between the walls and at the same time being pulled upward by the lifting chain, compression and stress forces should be compensated for by a guide shoe which at the same time adjusts itself based on the size of the each particular bale. Solid Works and Cosmos Works software were used for technical modeling, drawing and analysis of designed components. After various parts were designed based on mechanical engineering design and considering proper safety factor and standard parts, machine was fabricated. After fabrication, the pick-up bale was evaluated over a test rig belt. A significant (P 0.05) negative correlation was found between length of bales and strength bending (r= -0.6).Interaction effect of type and moisture content of bales was significant at 5 percent level for bending force. Effect of bale and surface type on frictional coefficient was not significant (P 0.05),