Punjab State has recorded spectacular rates of growth in agricultural output and productivity under the impact of technological advancement after the mid-sixties. There has been a large increase in the area under cultivation and the total cropped area over time in Punjab. At the same time, the cropping pattern has undergone drastic change in favour of cereal crops under the impact of green revolution. Keeping in view the multifarious importance of pulses, the area under such crops needs to be augmented. To promote the cultivation of pulses in the state, some efforts have been initiated under National Food Security Mission for Pulses in the state since 2007-08. The present study attempts to examine the current status, various constraints and potential of pulses in the state as well as the effectiveness of various initiatives launched under NFSM. The study has been based on both primary as well as secondary data. The primary data pertaining to production aspects including comparative economics of pulse production, one NFSM and one non- NFSM district namely Ferozepur and Moga were selected keeping in view the pulses acreage. A cluster of villages from these districts were selected for in depth survey. The study has been based on a sample of 100 pulse cultivators (50 from each district). The reference period for the primary data survey was 2006-07 to 2008-09. To understand the dynamics of pulse production in the state, time series data were collected from various official publications. The secondary data on area, production, yields, irrigated area, procurements scenario were collected from 1988 onwards. Area and production trends in rabi pulses showed that area and production under lentil and gram declined in most of the districts with few exceptions. Yield trends depicted that productivity declined significantly in case of lentil while it increased in case of gram. Trends in area and production of kharif pulses showed that in case of mash and arhar it declined while in moong crop, area and production increased during the recent years. The growth in area and production of competing crops: wheat in rabi and paddy in kharif increased almost continuously during study period. Due to low productivity of pulses, net return per quintal was lower as compared to its competing crops. The various suggestions from the pulses growers included assured and higher market price along with the availability of pest resistant and high yielding varieties. The impact of the NFSM pulses was quite reflected in terms of increase in area and production under pulses on the sample farms in NFSM district - Ferozepur. In the absence of any government market/procurement support, the pulses acreage could not be augmented significantly in the state. Being pulse crops risky both in terms productivity as well as profitability, providing adequate insurance cover to the growers could be one of the possible solutions to compensate for such damage to the crop in case of unseasonal rainfalls and natural calamities. There is also need of development of proper marketing mechanism with assured marketing system as in case of wheat and paddy for pulse crops in order to broad base pulses production in the state paving way for diversification of Punjab agriculture at this critical juncture of over-exploitation of the natural resources.