This study was conducted to explore the issues and problems which affect agricultural mechanization in Bunawan, Agusan del Sur, Caraga Region, Philippines. Using structured questionnaires, the data were gathered from 300 respondents often barangays in the said municipality. The results revealed that appropriate combination of hand tools, animal daft and mechanical power technologies for specific conditions and the proper level of technology as determined by the financial capacity of farmers were the common issues affecting agricultural mechanization in this municipality. Meanwhile, the high price of fuel and oil for the utilization of agricultural machinery, high maintenance cost and unavailability of spare parts of machines in the locality, the high cost of equipment, outstanding credit in the bank, and small farm size were the problems encountered. On these bases, agricultural mechanization policy, strategy, and the program could be formulated. The continuing effort in industrial extension for the manufacture of agricultural machinery in rural areas could also be considered to minimize the cost of production. Lastly, motivating farmers to organize farmers’ cooperative could likewise be given consideration.