An economic analysis of MGNREG programme has been made in the Mysore district of Karnataka during the year 2009-10. The women participation among total registered workers in MGNREGS has been found significant at 47.8 per cent. Among the total number of works executed under MGNREGS in the sample villages, 96.8 per cent have been natural resource management works and 74.2 per cent community works. More number of natural resource management works are needed to be taken up on individual farmers’ fields to make MGNREGS complementary to agriculture. Among the total participants and non-participants of MGNREGS, 70 per cent in each case were agricultural labourers. In the total income earned by participants and non participants, a major proportion was from agricultural labour work (60.55% and 52.59%, respectively), followed by crop cultivation (24.95% and 47.41%, respectively) and MGNREGS (14.50% in case of participants). Average annual person-days of employment generated from MGNREGS works was 57. About 68 per cent of landless participants derived 28 per cent of their household income from MGNREGS compared to only 6 per cent in case of participants with land. The study has found that, there has been reduction in the supply of labour to agriculture to the extent of 40.67 person-days per year on an average after the implementation of MGNREGS. Hence, MGNREGS works need to be executed only during offseason.