The farming systems practised by the tribal communities in the mountain environment of the North-Eastern region of India are eco-friendly and local climate responsive. These play a significant role in ensuring food security and conserving the local agro-ecological diversity. These farming practices are rooted in the local ecological set up, and they reflect the Indigenous people’s response to the environment of the area. The inhabitants of the Khonoma village of Kohima district, Nagaland, the study village, have been traditionally practising unique Alder tree-based jhum (shifting) cultivation, terrace-based panikheti (wet cultivation) and kitchen gardening based on their Indigenous knowledge and skills. They have been practising mixed farming by integrating crops, fish and livestock. The local communities have also evolved some methods for managing the natural settings to sustain their agriculture and livelihoods. This study is an attempt to investigate the methods of traditional farming system of Khonoma, a mountain village in the Eastern Himalayas. This study is based on primary data/ information collected through household survey using semi-structured household survey schedule, participatory rural appraisal (PRA), focus group discussion (FGD), and interviews with key informants and personal field visit in early 2021. The terrace-based panikheti, adopted by the people of Khonoma village, has been proved a location specific eco-friendly method for soil and water conservation. The Alder tree-based jhum practice, as opined by the villagers, is a sustainable livelihood option in the context of the mountain ecological setting and unique cultural values of the people.