Due to its peripheral location and formidable geography, the livelihood of people in Leh mostly depends on locally accessible resources, particularly livestock, tourism, horticulture, agriculture and services. The current study is an attempt to investigate the development and diversity of livelihood in the region by considering six relevant criteria for each of the five livelihood-generating resources. The data retrieved via structured questionnaires and interviews were analyzed by employing the widely used Livelihood Development Index and sophisticated Simpson's Livelihood diversity index across constituent spatial units or blocks. The Principal Component Analysis reported tourism as the most significant potential predictor influencing the growth of livelihood across the region. This was subsequently followed by contributions from services, livestock, agriculture and horticulture. Of the selected criteria, income from tourism per month, income from transportation of tourists, income from commercial shops per month, income from services per month, income from milk and milk products per month, income from the sale of sheep and goats per year, income by selling of apricot and vegetables (only sale) per month were reported as the most significant criteria determi livelihood development in the region. Moreover, 18 criteria out of 30 showed significant values for Simpson's livelihood diversity index reflecting the impact of these criteria on livelihood development across the study area. The aggregate value of the index was highest for livestock (S.D.I = 0.894) that was followed by agriculture (S.D.I = 0.881), services (S.D.I = 0.876), horticulture (S.D.I = 0.871) and tourism (S.D.I = 0.851). Based on the results, the study would like to insist on more diversified opportunities and reduced vulnerability of livelihood to the people especially residing in the southern blocks of the study area.