Diversification and intensification of existing maize-wheat cropping system on small, undulating and marginal farmer's field with suitable resource conserving practices is the key answer for increasing the profitability of hill farmers. Keeping this in view, an experiment with two tillage methods viz., zero tillage and conventional tillage, three cropping systems viz., maize-wheat, baby corn+frenchbean-pea-summer squash and maize+soybean-gobhi sarson+toria, two mulch treatments viz., no mulch and crop residue mulch, and two fertilizer treatments viz., recommended dose of fertilizers and 75% RDF+25% N through FYM was conducted at Palampur during kharif 2012-rabi 2014. The results showed that conventional tillage produced significantly higher maize grain equivalent yield [MGEY (11.2%)], production efficiency (13.9%), productivity of the system (11.2%), net returns (17.3%) and B: C ratio (12.4%) over zero tillage. Replacing traditional maize-wheat with baby corn+frenchbean-pea-summer squash increased MGEY (190.8%), production efficiency (190.5%), productivity of the system (182.1%), gross returns (121.0%), net returns (176.4%), B: C ratio (64.1%) and profitability of the system (176.4%). Application of mulch significantly increased MGEY by 7.4% as compared to no mulch. Similarly, integrated nutrient management also signifcantly inceased MGEY by 4.3% over recommended dose of fertilizers.