The present study has assessed the economic value of the eco-services provided by the alder-based farming system (AFS) at Khonoma village under Kohima district in Nagaland by covering 60 AFS and 39 non-AFS farms. Direct market price and preventive expenditure method under the revealed preference approach are used to measure the economic value of the services provided by the system. The estimated value of the nitrogen contributed naturally by the alder trees was ₹3208.95/farm and ₹7073.70/ha. The total value of the services provided by the alder trees at Khonoma ranged from ₹14936.81/farm to ₹17169.61/farm and ₹30521.59/ha to ₹35171.82/ha. Thus, the AFS has the potential to be replicated in other jhum areas through dissemination of knowledge on alder tree management.