This study surveyed the economic viability of Oyster mushroom cultivation as a sustainable employment solution. Nagaland, due to its favorable climatic conditions, availability of raw materials, and labour is ideal for mass scale mushroom production. The main objective of this paper is to assess the foretaste of Oyster mushroom cultivation to narrow down the current unemployment status of the state which stands at 13.4%. Oyster mushroom cultivators were selected from Chumoukedima and Dimapur districts of the state, representing small, medium and large farmers classified by the number of cylinders. BCR of 1.83 (small farm), 1.43 (medium farm), and 1.23 (large farm) are highlighted, with the smaller farms recording a higher BCR, which is attributed to lower production and better resource efficiency. Employment generation analysis showed that Oyster mushroom cultivation creates significant job opportunities for

skilled, semi-skilled and unskilled workers. Cultivation generates employment across the production cycle from substrate preparation and spawning to harvesting and marketing. The findings indicate that Oyster mushroom cultivation is a profitable business with employment generation ability, offering a viable path for economic development and unemployment reduction in Nagaland.