The Jammu and Kashmir union territory is the largest producer of walnuts in India, and this crop provides an important source of livelihood for many farmers. This study aims to measure the economic efficiency and profitability of walnut orchards and explore constraints in cultivation in the Kashmir Valley. It relies on a cross-sectional database collected from 240 walnut growers in the study area during the 2018/19 production period. Results reveal that walnut cultivation is highly labor-intensive as it incurs 80 percent of total production costs. The cost-benefit ratio of 1:5.35 per hectare indicates better economic prospects for the walnut industry in Kashmir Valley. The factors affecting productivity include farmyard manure, labor, chemical fertilizers, plant density, women participation, and information. The regression coefficients of production analysis, marginal value product, and marginal factor cost ratio indicate that there is ample scope for the expansion of walnut cultivation in the research area. However, walnut growers are confronted by several problems that tend to be location specific. The study calls for policy intervention concerning improved access to extension services, credit, and farmer training programs to boost walnut production in the study region.