Sal seeds are an important Non Timber Forest Product (NTFP) and are an important livelihood resource for about 90,000 forest fringe villages with a combined population of 56 million. During the month of May and June, when there is almost no other source of income, rural people are engaged in seed collection which provides them with a crucial bridge income before the commencement of the agricultural season. Hence, a study was conducted at three sites in the mixed Sal forest of Nainital district of Uttarakhand (India) to assess the present and future resource potential of Sal seeds, existing market mechanism and its role in livelihood generation of rural communities in Kumaun Himalaya. Seed fall was more in June accounting for more than 50% of annual seed fall. The average dry weight of seed wings was 21.33%, kernel 64.83% and shell 13.83% at the study sites, and the average biomass of seed was 722 kg ha^-1 seed collection year. Sal seed collection work in Kumaun is capable of generating about 146,025 man-days of employment in a collection season.