Within the municipal limits of Dalhousie, commercial agriculture is nearly nonexistent due to the steep terrain and dense urbanization. However, the town serves as a micro-market for the agricultural output of the surrounding Chamba district.
The broader region is known for horticulture, particularly apple and plum orchards. Terraced farming on the lower slopes yields maize, wheat, and potatoes. Additionally, pastoralism is common among the nomadic Gujjar and Gaddi tribes who pass through the Dalhousie hills during seasonal migrations with their flocks of sheep and goats. Organic farming initiatives have been gaining traction in the neighboring villages to meet the demand from eco-conscious tourists and boutique hotels.
