Livelihood options and resources vary from one region to another owing to both natural and man-made factors. However, the livelihood options for the tribal communities are mostly centered around agriculture, nature, and indigenous knowledge. Indigenous knowledge played vital role in several aspects of tribal life. The tacit knowledge possessed by the tribal communities plays a major role in defining their livelihood activities. The Lepcha tribe of Sikkim is also one such tribal community whose livelihood depends largely on nature and indigenous knowledge systems. The paper intends to explore and outline different forms of livelihood practices and activities pertaining to the indigenous knowledge adopted by the Lepcha tribe of Dzongu region, Sikkim. Furthermore, the paper yields a nuanced study of the problems and prospects associated with livelihood practices in the wake of modernity and developmental activities in the region.