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The present investigation was carried out to quantify carbon stock and economic potential of the pastoralsilviculture system along altitudinal gradient in Indian north-western Himalayas during 2019-2021. The area was divided into four altitudinal ranges as per agro-ecological classification of the state viz., altitudinal ranges viz., zone-I (<1000 m amsl), zone-II (1000-1500 m amsl), zone-III (1500-2500 m amsl) and zone-IV (> 2500 m amsl). Further, farmers practicing pastoralsilviculture system were divide d into three farmer categories viz. marginal (less than 1 ha land area), small (1-2 ha land area) and semi-medium (2-4 ha land area) as per Government of Himachal Pradesh standards. The results revealed that the total biological productivity (aboveground+belowground) of the pastoralsilviculture system ranged between 24.90-43.24 Mg ha-1, showing an increasing t rend along altitude with zone-III having maximum total biomass production. The bio-economic potential of the pastoralsilviculture system was not found to be significantly affected by the farmer category. Soil carbon density was maximum (31.65 Mg ha-1) at zone-I which was significantly at par with soil carbon density at zone-III (30.86 Mg ha-1). Total carbon stock potential, comprising vegetation carbon and soil carbon, of the system was recorded maximum (52.48 Mg ha-1) for Zone-III, while minimum (42.58 Mg ha-1) for zone-IV. Economic potential of the pastoralsilviculture system in terms of output:input ratio was found maximum (3.73) in zone-III which was significantly at par with output:input ratio in zone-II (3.62) and minimum was recorded in zone-IV (3.05).