Many hilltribes live in the remote highland area of northern Thailand, each with their own language, culture, tradition, customs and beliefs. Their economic activities depend on traditional and subsistence agriculture. Although government agencies have tried to improve the social welfare of highland communities, many problems still exist including poverty, destruction of natural resources caused by slash and burn agriculture, and cultivation of narcotic crops, especially opium poppy. This study investigates the agricultural and socioeconomic activities of the Red Lahu hilltribe in Ban Pa-Loh village No.11 and Mhong hilltribe in Ban San-Pa-Kia village No.12, Chiang-Dao district, Chiangmai province. It describes land use, crops grown, income and decision making. The number of households cultivating opium poppy and reasons for either continuing or stopping cultivation are also described. The planted area and production of both upland and lowland rice are insufficient to supply household needs for the whole year. Cultivation of rice should be encouraged to meet household needs, with emphasis given to increasing yield through better seed, manure, proper weeding and pest and insect control. Extension efforts should take into account social factors and ensure close and regular contact with the hilltribe leader. In the longer term, once hilltribes have enough rice, the introduction of alternative cash crops, livestock and some non-agricultural activities for the market should be considered.