Pastoralism is a complex socio-ecological system practised by the Changpa community in fragile cold desert ecosystems. Pastoral livelihood practice maintains a balance between ecology and economy; however, there is limited rational understanding of the pastoral livelihood practice. The study was conducted to explore the economy and ecology of the Changpa community by understanding pashmina-based livelihood practices that depend on pasture and water resources. The study used an ethnographic approach. The Changpa community has been adapting to harsh climatic conditions, geopolitical challenges and scarce natural resources to sustain its livelihood; however, findings show that many profound changes have taken place in and around Korzok, including infrastructural development in the village and the border area, increasing pashmina population, expansion of tourism, restrictions on movement due to protected areas and security issues at the border affecting access to traditional pasture and water resources. Climatic changes have also badly resulted in increasing temperatures, drying up of pasture and reduced water, thus creating many livelihood vulnerabilities. More markets for pashmina are intensifying pashmina goats, changing livestock composition and creating pressure on limited pastureland. These changes also disrupt the balance between ecology and economy and threaten traditional livelihoods. In the case of the economy, pastoral livelihood is diversifying in tourism, labour and small economic activities. Evidence from ecology and economy suggests a need for integrated policies focusing on conserving ecology and protecting the livelihood of the Changpa community. Therefore, the paper attempts to focus on understanding the economy and ecology of the Changpa community for the sustainability of pastoralism.