Economy of many countries world-wide depends upon irrigated agriculture. The performance of irrigation system having large network of canals fed from rivers is influenced by many parameters. Inequitable water distribution, Shortage of water during peak crop water requirements, tempering of insufficient funds for proper maintenance and high sediment loads in canals are worth mentioning issues. In this paper the performance of Lower Bari Doab Canal with emphasis on sediment transport analysis has been investigated using field data. The performance of canal has been discussed using delivery performance ratio (DPR) a well known performance indicator. The sediment laden water flow problem may be described by three equations; the one dimensional equation of motion (momentum-equation) and the flow and sediment-continuity equations. All the three equations are partial differential equations and may be solved by the finite difference method. Numerical models can be used for this purpose. SETRIC model has been used in this paper. The sediment deposition and erosion in time and space along the canal has been simulated. The relevant data were obtained from Punjab Irrigation and Power Department Lahore. It is observed that sediment deposition and erosion is a significant problem being faced by the canals in Punjab.