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This study was intended to identify the endowment of livelihood assets and to assess their role in adoption of livelihood strategies in district Bhimber, AJ&K. A basic survey was carried out to collect primary data from 310 households selected through convenient sampling. Endowment of livelihood assets was calculated by constructing asset indices. Asset weights were obtained using Principal Component Analysis (PCA). Assets indices revealed that district has performed best on physical capital (index value 0.63) and human capital (index value 0.59) dimensions. It was found that foreign remittance is the most popular livelihood strategy (29% of households' main source of income) in the district. Apart from this, livelihood strategies are fairly diverse in different tehsils (sub-divisions) of the district. Results of Multinomial Logit Model demonstrate that human capital has the strongest positive role to enable households to enter into more rewarding livelihood strategies. Study recommends to take appropriate steps to reduce pressure on natural resources, to make further investment in human capital to enable people entering into more rewarding livelihood strategies and to educate households to use remittance money for job creating activities to enhance employment opportunities and to augment household income. [ABSTRACT FROM AUTHOR]