The study investigated tree resources production, subsistence consumption, economic dependence and income inequality mitigation of homestead agroforestry in Budgam district of Kashmir. Multistage random sampling technique was employed to select the 106 homesteads from the 12 sample villages. Data were collected by administering structured interviews, non-participant observations and focus group discussions. Descriptive statistics were used to analyze the data. Results revealed that average production (P) and consumption (C) of homestead tree resources were; fuel wood (P= 11.86 q/year, C= 9.13 q/year), tree browse (P= 10.50 q/year, C= 7.16 q/year), timber (P= 3.15 m(3)/year, C= 1.80 m(3)/year), wicker (P= 0.22 q/year, C= 0.00 q/year), fruits (P= 7.91 q/year, C= 4.50 q/year) and leaf litter (P= 5.02 q/year, C= 5.02 q/year). Homestead tree resources generated total income of Rs. 3680437/year (subsistence= Rs. 2159414/year, cash= Rs. 1521023/ year) @ Rs. 34721/household/year. Fruits contributed largest share (47.49%) to the total tree income, followed by wicker (18.74%), tree browse (13.97%), fuel wood (11.44%) and timber (8.36%). Homestead tree income contributed 16.23% while farm and non-farm income accounted 53.11% and 30.67% of total household income, respectively. Gini-coefficient was 0.48 when homestead tree income was included and 0.54 when it was excluded which indicated that the tree income had strong equalizing effect on local income distribution.
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