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This paper deals with production systems, cost structure, and profitability of freshwater prawn, Macrobrachium rosenbergii, farming in a new area of Mymensingh district in the north‐central part of Bangladesh. In the study area, prawn farming practice is still extensive, and only a few farmers (20%) cultivate semiintensively. The costs and returns of extensive and semiintensive farming systems are compared. All farmers in different farming systems made a profit, with seed and feed dominating variable costs. Considerable variation in production costs and profitability was observed. Based on the Cobb–Douglas production function model, return to scale indicates that there is scope to increase production and income from prawn farms in extensive and semiintensive systems by applying more inputs (i.e., seed, feed, and fertilizer).