Crop yield data is critical for managing sustainable agriculture and assessing national food security. Current study aims to increase Peanut productivity from current levels by analyzing the yield gap of production potential between theoretical yield and actual farmers’ yields. The spatial yield gap of Peanut for Thiruvannamalai district of Tamil Nadu is examined in this paper by integrating the products of microwave remote sensing (SAR Sentinel-1A) with DSSAT CROPGRO peanut simulation model. CROPGRO Peanut model was calibrated and validated by conducting field experiment at Oilseeds Research Station, Tindivanam during Rabi 2019 for predominant cultivars viz. TMV 7, TMV 13, VRI 2 and G 7. Actual attainable yield was recorded by organizing CCE with help of Department of Agriculture Economics and Statistics in the respective monitoring Villages. Regression analysis between maximum recorded DSSAT Leaf Area Index (LAI) at peak flowering stage of peanut and yield recorded by Crop Cutting Experiment (CCE) for spatial yield estimation of Peanut in Thiruvannamalai district of Tamil Nadu during Rabi 2021 was carried out using ArcGIS 10.6 software. The results showed that the simulated potential yield ranged from 3194 to 4843 kg/ha, whereas actual yield ranged from 1228 to 3106 kg/ha, with a considerable disparity between the actual and potential yield levels (1217 to 2346 kg/ha) of the monitored locations. The minimum, maximum and average yield gaps in Peanut for Thiruvannamalai district was assessed as 1890, 2324 and 2134 kg/ha, respectively. To reduce the production difference (Yield gap) of Peanut cultivation, farmers should focus more on management issues such as time of sowing, irrigation or water management, quantity and sources of nutrients, cultivar selection and availability of quality seeds tailored to each region.