The grazing has been considered to be one of the several factors leading to natural resource degradation in mountain ecosystem. This study was taken up to document the natural resource scenario, grazing scenario, sources of feed and fodder and KAP of farmers in two clusters of villages in two block of Nainital district. The information was collected through Participatory Rural Appraisal and secondary sources. It was found that the livestock-keepers are greatly dependent on the natural resources to fulfill the growing human and livestock requirements. They are equally interested, as per the PRA-findings, to increase the productivity of natural resources. But, no alternative is available for them than to exploit the natural resources to meet their household requirement. Moreover, they do not have adequate knowledge about the natural resource management. Therefore, the farmers need to be educated and trained on various aspects of natural resource management. Here lies the role of different Government and Non Government Organizations. As their attitude is favourable towards natural resource management, it is easier to change their practices leading to restoration of natural resources.