The purpose of this study is to investigate the productivity and cost of the Urus MIII skyline yarder during extraction of timber from spruce stands in northeast Turkey. The productivity of Urus MIII skyline yarder was determined by using the methods of work and time study. The research results implies that some working characteristics of the Urus MIII skyline yarder such as fuel consumption, load volume, yarding distance, speed of the carriage, time consumption per phases have an important impact on productivity of the skyline yarder. The results indicated that the productivity of Urus MIII skyline yarder was 10.63 m(3)/hr for average 253 m. Daily productivity was found 84.80 m(3). The unit cost of yarder was found to be 30.00 (sic)/hr. Also, the average fuel consumption was 5 liter/hr.