The study examined the labour supply-demand gap and farm mechanization as a coping mechanism to labour shortage in Northern and Southern Dry Zone of Karnataka, India. Based on the extent of net irrigated area under canal which is a proxy for greater degree of mechanization, Sindhanur taluk of Raichur district and Mandya taluk of Mandya district were selected for the study. The results revealed that the labour requirement was more in case of partially mechanized farm compared to that of mechanized farms. The mechanization of agricultural operations has saved labour use to a certain proportion compared to partially mechanized farm, which was around 20 per cent in paddy, 13-15 per cent in ragi, jowar and bengalgram. The labour demand exceeded labour supply during the months of July and December in Sindhanur taluk while it was during December and October in Mandya taluk highlighting the seriousness of labour scarcity. The results also indicated that the mechanization helps to cope-up with labour shortages particularly during the peak seasons.