This paper examines the household livelihood strategies under resettlement stress of Van Gujjar community in the Shivalik foothills of Northern India. It also looks at the relationship between household assets and livelihood strategies. The accessibility to capital assets was assessed by the marginalized and depressed sections of the society and analysed in detail. Major causes of increasing exclusion from their natural habitat and increasing sedentarization. Livestock continues to be the most important asset determining livelihood outcomes. The livelihood strategies have been investigated in relation to education, Social Participation, credit facilities, cooking fuel and Source of water. The alternate livelihood strategies adopted by Van Gujjars includes diversification of life stock rearing, wage employment and exchange of labour. Mitigation of sedentarization distress requires provision of education, health and other social safety measures.