The paper has estimated the extent of adoption of an improved rice seed technology in the Kashmir valley and has studied its impact on the economic and the livelihood security of adopters of this technology. The determinants inducing farmers towards adoption of new technology have been identified and technological gaps in its adoption have been estimated. For presenting a comparative picture, 130 adopters and 122 non-adopters of improved technology were identified from six districts , two each from the three regions of Kashmir valley. The study has revealed, based on data collected for the agricultural year 2010- 11 that by adoption of improved technology, both gross returns and net returns have increased considerably, while the cost of production has decreased. The study has clearly brought out that adoption of new technology has provided better economic and livelihood security at the household level in the study area. The age, education and land size have been identified as the major determinants of technology adoption. By presenting statistics obtained through economic surplus model , the study has presented a strong case for higher investments on R&D , extension services delivery and dissemination of improved technology in the Kashmir valley.