The economy of Mon town is driven primarily by public sector employment, small-scale retail, and agriculture. As the district headquarters, government offices, schools, and hospitals are the largest formal employers.
The town serves as a commercial hub for the surrounding rural villages, with markets trading in agricultural produce, basic consumer goods, and traditional handicrafts. Tourism is an increasingly vital economic driver, injecting capital into the local economy through homestays, transport services, and artisan sales. The overall cost of living is relatively moderate, though the transportation of goods up the steep mountain roads can inflate the prices of basic commodities imported from Assam.