Improvement of harvesting efficiency and mitigation of undesirable environmental impacts of fishing gears are of considerable importance for achieving long term economic and environmental sustainability in fisheries. This paper analyses the operational efficiency and economic performance of the circle hook and the J-hook, commonly used by traditional fishers in the demersal longline fishery of the Sultanate of Oman. A longline experiment was conducted at three fishing locations at Masirah Island of Al-Sharqiyah Governorate. A total of 6,120 baited J-hooks and circle hooks were deployed over a 17-day period. The findings from this experimental research suggest that the overall performance (measured under various operational yardsticks such as hooking status and location, catch composition and quality, catching efficiency, and time and cost efficiency) of the circle hook is better than its counterpart. The results also indicate that the use of circle hooks has the potential to yield better financial returns. It is acknowledged that the reliance on three fishing locations may restrict the scientific generalizations. However, it is hoped that the results from this study will provide insight into the design of future experiments to ensure the validity of the present results and design effective management measures which will promote ecosystem-based approach to fishery management advocated by the FAO Code of Conduct for Responsible Fisheries.