Despite the rugged terrain, agriculture remains a vital part of Manali's heritage and economy. The region is most famous for its apple orchards, which were introduced during the British era and now blanket the hillsides around the town. The cool climate is ideal for horticulture, producing high-quality apples, plums, pears, and apricots.
In addition to fruit, local farmers grow maize, wheat, and seasonal vegetables on terraced fields. Livestock rearing, primarily sheep and cattle, provides dairy and wool, the latter being essential for the local textile industry. Trout farming in the cold, clear waters of the Beas River and its tributaries is another highly successful agricultural niche, supplying local restaurants and markets.

