The concept of ecosystem conservation as a broad theme came into existence during the 1970s under the Man and Biosphere Programme (MAB) of the United Nations Educational, Scientific and Cultural Organization (UNESCO). The Indian Government followed this approach and chose the method to segregate the landscape for conservation of the ecosystem as well as for the development of the local economy and its people. We have examined the effect of this policy and concurrently developed a theoretical modeling approach to understand how human behavior is changing under shifting political, socioeconomic and environmental conditions. A specific focus has been on how the landscape is changing in the mountains of the Indian Himalayan region where about 10% of the total geographical area is converted into protected landscape for conservation of biodiversity. For local people living in the Himalayan mountains in India, agriculture is the main land use activity and is strongly linked to the forests in providing sustainability. There are several branches in the rural ecosystems where the local people's economy was centered. These include agriculture, animal husbandry, medicinal and aromatic plants cultivation, forest resource collection, tourism and other occupations. The greatest proportion of the population was engaged in the agriculture sector, whose contribution is high in the rural economy (61%); followed by animal husbandry (19%), forest resource collection for economic gain (18%), and medicinal and aromatic plants cultivation (1.5%). However, three decades ago the animal husbandry branch of the rural ecosystem was contributing the maximum share towards rural household income (40%) followed by tourism (35.2%), and lastly agriculture (14%). The desire of farmers to secure the optimum output from agricultural land use has resulted in an increase for resource collection from the forests. The people's perception (n = 1,648) regarding overall changes occurring in the region was varied and most showed that the current trend within rural ecosystems has emerged because of the implementation of conservation policies/creation of national park and biosphere reserve (80%), followed by limitation (22%), climate (20%), population growth (7%), national economy (10%) and least by socioeconomic change (5%). The theoretical agent model developed here draws attention to agent/farmer behavior and land resource use for his livelihood in the temporal dimension. The current study would be helpful to introduce new approaches for the development of the methodological and theoretical aspects associated with the complex human and ecosystem interactions in the Himalayan mountains for sustainable landscape development.