A field experiment was conducted during the summer season of 2017 and 2018 at Research Block of Department of Horticulture, SGRR School of Agricultural Sciences, Dehradun, Uttarakhand to study the effect of farmyard manure (FYM) and fertilizers on fruit yield, economics, energetics of capsicum (Capsicum annuum L.) and on soil chemical properties. The transplanting of capsicum was done in the mid week of March in both years. The highest level of farmyard manure (20 tonnes/ha) resulted in significantly higher fruit yield (28.9 t/ha) over other 2 levels (no application and 10 t/ha) in both year. An application of 125% of recommended NPK (125, 27.5 and 52.1 kg N, P and K/ha) significantly out yielded the other 2 fertilizer levels of 75% and 100% of recommended NPK. The response to FYM and inorganic fertilizers was also significant for fruits/plant, average fruit weight, plant height, fruit length and fruit diameter. The maximum net returns were achieved (` 2,05,500/ha and ` 221400/ha) with 20 tonnes of FYM and 125% of recommended NPK, respectively. The highest net energy return, energy ratio and energy productivity were also under 20 t FYM/ha and 125% of recommended NPK. Available nutrients (N, P and K) status of the soil improved significantly due to 20 t/ha of FYM and 125% of recommended NPK over other treatments.