The cooperative sector in Nagaland plays a vital role in fostering sustainable development by promoting economic self-sufficiency, social equity, and environmental responsibility. This study examines the contribution of cooperatives across various sectors, including agriculture, handloom, handicrafts, and rural finance, in enhancing livelihoods and strengthening local economies. It explores the challenges faced by cooperatives, such as inadequate financial resources, lack of infrastructure, and policy limitations, while also identifying potential strategies for their growth and sustainability. The study highlights how cooperative societies contribute to inclusive development by empowering rural communities, encouraging collective decision-making, and ensuring the efficient utilization of resources. Through an analysis of existing cooperative models and their impact, the research provides recommendations to enhance the effectiveness of the cooperative sector in achieving long-term sustainable development in Nagaland.