The Nanda Devi Bio sphere Reserve (NDBR) in the western Himalaya has a high level of biological and cultural diversity. The Bhotiya community, whose livelihood is highly dependent on local natural resources, inhabits the buffer zone of NDBR. Bhotiya practice seasonal and altitudinal migration and stay inside the buffer zone of NDBR for only 6 months (May-October). A survey was conducted in 1996 in 5 villages in Pithoragarh District of the buffer zone, where Bhotiya cultivate medicinal plants on their agriculture fields. The aim of the survey was to understand the socioeconomics of medicinal plant cultivation and evaluate the future prospects of this practice in promoting sustainable development among the local community. Of a total of 71 families, 90% cultivated medicinal plants on 78% of the total reported cultivated area (15.29 ha). At the time of the survey, a total of 12 species of medicinal plants were under cultivation, of which 6 were being marketed while the remaining 6 were still under nursery plantation for future propagation. On average, a family earns about Rs.2423 ± 376.95 per season from the sale of medicinal plants (Rs.38 = US$1 in 1996). Based on the average productivity (kg/ha/y), we estimated that an average family could earn between Rs.4362 and Rs.86,500 from the sale of medicinal herbs. Encouragement of medicinal plant cultivation at high altitudes in the Himalayas would help to generate better monetary returns as well as conserve these herbs in the wild and preserve traditional ethnomedicinal knowledge among local people.