The study examined the programme related and socio-economic factors affecting people’s participation in Haryali project of Nalagarh block in Himachal Pradesh through a survey of 71 project related personnel and 428 farmers. The findings showed that in total   22 factors (4 pertaining to programme and 18 socio-economic) were perceived by the respondents which affected the people’s participation. Some of the key socio-economic factors influencing people’s participation were lack of awareness about programmes, illiteracy, poor economic conditions, lack of faith in government programmes, subsidy culture, village politics, lack of exposure visits, low interest in money contribution, lack of demonstrations and transparency. Programme related factors were lack of Entry Point Activities (EPA), lack of flexibility in expenditure according to field conditions, variation in wage payments and lack of provision of advance payments. Policy and development emphasis on these factors would lead to greater participation in Haryali watershed development programme.