Naga socio-economic condition was a distinctive feature to that of other North-eastern States as well Indian States. From time immemorial, Naga’s society is a rural backbone with strong exceptional Naga customary law. Socially, Naga people practiced “Socialistic pattern of society”, and villages were situated at hills tops and slopes because of their tradition of head-hunting and inter-village feuds. Economically, Naga people survived aged long through hard earned labour engaged in the primitive system of shifting and terrace cultivation on one hand and ‘Barter’ transaction with people in the nearby Assam and Myanmar on the other hand. Attainment of Nagaland Statehood on 1st December 1963 marks a significant event. Developmental activities pursued in full swing with long term objectives and proper planning mechanism executed from post Statehood period onwards; prior to Statehood, only adhoc schemes were implemented with short term objectives. All kinds of developmental schemes were introduced that cover both urban and rural life’s. Recently the introduction of MGNREGA, SGSY and IAY programmes have benefited the rural poor people to a large extend. Two districts, namely, Wokha and Mokokchung, were selected as sample for case study. Nagaland State socio-economic indicators on one hand and improvement of income earning, employment generation, assets creation and living standard in terms of consumption on the other hand in the grassroots level of Wokha and Mokokchung districts would determine the socio-economic transition of Naga people.