Technological and economic prospects of rice cultivation in Bageshwar district of Uttarakhand (India) has been studied using standard concepts and methodologies to provide a feedback to the researcher, academicians and policy makers for improving food security in the hilly terrain of India. The study provides a comparative evaluation of the technology adoption, profitability and yield gap in rice cultivation at different altitudes using the field level data.Farmers in different altitudes exhibited varying level of technology adoption leading to differential economic returns. The gap between actual and potential yield can be filled by adoption of location specific technologies, efficient extension and input delivery services and better infrastructure facilities.