This study aimed at examining the effectiveness of demonstration technique to improve vocabulary and grammar element in teaching speaking at EFL learners. This research applied true-experimental design. The respondents of the study were 32 students (class IIA) as experimental group and 32 students (class IIB) as control group from the second semester of Economic Departments of Hamzanwadi University in the academic year 2016-2017. To collect the data, a pre-test and a post-test were given to the EFL learners. To analyze the data, the researcher applied SPSS 17 for windows. To analyze whether there was a significant difference in the mean score between pre-test and post-test, the researcher used a paired-samples t-test to get answer of the hypothesis. After performing a paired-samples t-test, the researcher found that there was a significant difference in mean scores between experimental and control group and t-test score is higher than t-table, it meant that demonstration technique was significantly effective in teaching speaking, especially to improve the element of vocabulary and grammar in teaching speaking at EFL learners.