The paper assesses the impact of MGNREGA on employment and labour supply in agriculture sector and migration. The study conducted using Multi-stage random sampling in Sirmaur district of Himachal Pradesh. Based on secondary level data analysis and the survey covering 100 households from 10 panchayats of two blocks, the study finds that scheme has positively affected the employment level. However, labour supply in agriculture shows negative trend which can overcome if MGNREGA projects provides off-season employment to agricultural labour. Similarly, migration level has also decreased which shows positive impact of scheme. To hold on this, new and innovative works need to be found out not only to retain the rural labour, but also to provide productive employment.