There is enough evidence to show that the forest biomass has decreased significantly in the Indian Himalayan state of Himachal Pradesh. The government has responded through restrictive measures to check this decline. Using tree biomass as proxy for degradation, we assessed the current state of biomass within dominant land use types and examined its implications for sustainability. The highest above-ground mean tree biomass density of 1158 t·ha-1 was recorded for the reserved forest followed by 728, 13, 11, 8, 5 and 3 t·ha-1 in the protected forest, fallow land, cultivated-unirrigated land, grassland, orchard land and cultivated-irrigated land respectively. Of the total accessible biomass, only 0.31% was extracted annually by the local people for fuel, fodder and other uses. Though, the current level of extraction may be sustainable in the short run, insufficient regeneration is observed for long term sustainability. Forest biomass production was simulated for the next 30 years with a logistic growth model and the relative significance of input variables in influencing system behaviour was analysed through sensitivity analysis. The model results highlighted the declining forest resources in the long run. Positive response through appropriate government policies can, however, change the scenario for the better.