This paper assesses the development challenges and opportunities in the CHT and proposes some integrated strategies for the development of the farm and non-farm sectors within a supportive environment that provides peace, stability, and good governance, together with appropriate policies and institutional mechanisms. The approach implies a shift in focus from agriculture to the development of the secondary and service sectors and will bring dynamism into the rural economy. Promoting non-farm activities and supporting labour mobility, both farm to non-farm and internal and external migration, could be key elements in a rural development and poverty reduction strategy for the region and could help to address the growing population pressure.