This research is aimed to improve the students’ reading comprehension through retelling technique. This research examined how the profile of the use of retelling technique to improve the students’ English reading comprehension, How far the improvement of the students’ reading comprehension of the third year students of SMK Muhammadiyah 02 Paguyangan 2015 through retelling technique. Twenty five students of the third year students of SMK Muhammadiyah 02 Paguyangan2015 were instructed through retelling technique to improve their reading comprehension. The methodology of this research used Classroom Action Research (CAR). There were two cycles to give the students more opportunities to improve their understanding about how to retell the passage well and effectively. The results show that the students’ reading comprehension improves significantly. The T-test results shows that the T-test of cycle I is 17.69 and cycle II is 20.9. This technique uses the students’ cognitive skill to recall the text that they have read. This technique can help the students to remember the information and the details of the text and to rewrite the gist of the passage. In the implementation of retelling technique, the students could enrich their vocabularies and be confident to recall and rewrite what they have read. They also performed their understanding with good connecting the information to another details. Based on the results, the research recommends using retelling technique in reading instruction.