Population pressure on limited land resources pushed farmers to bring non-cultivated area of the rainfed Pothwar under arable farming. Land leveling options -are used by farmers extensively to bridge land resources inadequacy to ensure even a subsistence level of farming. The use of land leveling as a single solution is not endorsed by the soil and water conservation experts as against the development oriented public departments. The expensive and low paying nature of existing land leveling practices is criticized at certain foras. This study was planned to analyze the cost and benefit of leveling uncultivated lands, status of erosion and production gains at new-leveled lands. Cross section data was collected to provide empirical evidence on the problems and prospects of land leveling. Result shows that leveling of uncultivated land is profitable under many situations. This is particularly valid when land is subject to severe erosion and un-recoverable damages. It was estimated that incremental land value of leveled increased 3-5 times than uncultivated lands. The pay back period of the investment that include cost of bulldozer leveling, additional tractor hours used, structure cost, erosion management was estimated about 5 years. It is concluded that land leveling decisions need to be Inade in consultation with the technical departments and considering different production packages compatible to the physical resource base and socio-economic circumstances.