The Karnataka state has implemented the developmental activities under the mission in the 30 districts, covering 16 important horticultural crops and the scheme has been in function successfully from 2005-06 to till. Karnataka, one of the major fruit growing states in the country was selected purposively for the study. With this background the present study was undertaken to analyze impact of National Horticulture Mission (NHM) scheme on horticulture development in Karnataka. The study is based on both primary and secondary data source. The analytical techniques like CAGR, CV, Instability index, Principle Component Analysis technique and averages were employed. Out of total physical achievement (2.10 lakh ha) of horticultural crops under NHM, the highest area of about 60.82 per cent has been covered under fruit crops followed by flowers (12.88 %), plantation crops (12.36 %), spices (11.24 %) and least was medicinal and aromatic plants (2.69 %). Based on the analysis it was observed that the instability in area, production and productivity of horticulture crops was reduced after implementation of NHM in the study area which showed positive impact of NHM but growth was slightly reduced but significantly positive during the same period when compared to pre-NHM period. The per hectare net returns (without subsidy) from grapes, mango and pomegranate were estimated to be Rs. 9,68,705, Rs. 2,76,275 and Rs. 3,66,533, respectively. Similarly, the net returns (with subsidy) from these crops were Rs. 10,26,039, Rs. 3,03,001 and Rs. 3,98,033, respectively. B: C ratio (without subsidy) was 2.58, 2.66 and 2.41 for grape, mango and pomegranate, respectively and B: C ratio (with subsidy) was estimated to be 3.19, 3.18 and 2.73 for respective crops. Horticultural crops had advantage over conventional food crops not only in terms of total profits but also provided better employment opportunities by increasing labour mandays.