<p>Natural resources play a pivotal role in driving human development, providing essential inputs for economic growth, social well-being, and environmental sustainability. In fragile mountain ecosystems like the North-Western Himalayas, especially along the Line of Control (LoC) between India and Pakistan, sustainable management of these resources is both a necessity and a challenge. The present study aims to assess the resource potential of watersheds in this sensitive border region to guide sustainable development efforts. This was curated by integrating a coherent methodology of the Analytical Hierarchy Process (AHP) within the framework of Multiple Criteria Decision Analysis (MCDA) with Geographic Information System (GIS) for decision-making processes about spatial phenomena. Key physical parameters such as soil texture, drainage density, slope, geology, aspect, land use, and land cover were analyzed using thematic maps derived from remote sensing data, Survey of India (SoI) topographical maps, and other secondary sources. The Holistic resource analysis classified the watershed into five categories of resource potential, ranging from exceptional to poor. The findings indicate that out of the total area of 2405.V km², 1571.5 km² (65%) is categorized as having moderate resource potential, while 554.1 km² (23%) is designated as having low resource potential. A portion of land spanning 267.2 km² (11%) has good resource potential. These findings offer actionable insights for policymakers and planners to delineate Resource Potential Zones (RPZ), guiding sustainable land use, resource management, and development. The study highlights the potential of underdeveloped border regions to advance sustainable development in Himalayan mountain geographies.</p>