The main purpose of this thesis is to measure the Esfahan Steel Industry's inputs productivity. Both partial productivity and total factor productivity (TFP) are measured applying the index measuring and production function methods, respectively. A translog production function is used including materials and energy as inputs in addition to labor and capital. The Ordinary Least Squares (OLS) method and yearly time series data (1973-2005) are used to estimate the productivity. The results show that the partial and total productivity are fluctuated around its time trend during the whole period. Overall, the Esfahan Steel Industry's TFP has declined during the period of 1973 to 2005.