Although fertilizer recommendations are in place for the established sugar agro-industries in Ethiopia, research based and site specific fertilizer recommendations was lacking for Welkayte sugar project. Thus, a field experiment was conducted at Kalema site in 2016 G.C. to investigate the effects of different urea and NPSZn blended fertilizers on sugarcane yield and quality parameters. A factorial experiment, considering four levels of urea (0, 120, 160 and 200 kg ha-1) and four levels of NPSZn (0, 250, 312 and 390 kg ha-1) was conducted in a randomized complete block design in three replications. Results showed a significant (p<0.01) effect of fertilizer application on sugarcane growth and development parameters, cane yield and sugar yield. The highest cane yield (128.4 t ha-1) and sugar yield (14.9 t ha-1) were obtained from application of 200 kg urea ha-1 and 390 kg NPSZn ha-1. Based on the present finding, the highest sugar yield was obtained from the combined application of 200 kg urea ha-1 and 390 kg NPSZn ha-1. The economic analysis also indicated that application 200 kg urea ha-1 and 390 kg NPSZn ha-1 gave the highest marginal rate of return (MRR 419%). Because this research was conducted at one location and one cropping season, further study is needed to recommend optimum and economically feasible Urea and NPSZn fertilizer rates for the study area. Till then, however, it is advisable to use 200 kg urea ha-1 and 390 kg NPSZn ha-1 for the sugarcane plantation in Welkayte sugar project area.