The study on effect of integrated nutrient management on yield and economics of capsicum hybrid (SH-SP-5) was carried out at two locations, one at Experimental Farm of the Division of Olericulture, SKUAST-K, Shalimar and another at Regional Research Station/Faculty of Agriculture, Wadura (Sopore), during kharif 2007. The experiment was laid in Randomized Block Design replicated thrice at a spacing of 60 x 45 cm. Ten treatment combinations were tested. Observations were recorded on growth, yield, attributing traits and economics of production. Under both locations, treatment T9 (N=150 kg ha-1; P2O5 = 120 kg ha-1; K2O = 60 kg ha-1; FYM = 40 t ha-1), proved better in improving growth and yield attributing traits than other treatment combinations. Maximum plant height (55.65 cm), number of branches (6.61), plant spread (44.50 cm), fruit length (8.30 cm), fruit diameter (8.00 cm) were recorded in treatment T9. Highest fruit yield (686.39 q ha-1) was recorded in treatment T9 followed by T8 (N=150 kg ha-1; P2O5 = 120 kg ha-1; K2O = 60 kg ha-1; FYM = 30 t ha-1, 670.26 q ha-1). Economic studies indicated that highest gross returns of ` 4,11,834.00 was obtained in treatment T9 while maximum cost-benefit-ratio of 6.50 was recorded in treatment T7 (N = 150 kg ha-1; P2O5 = 120 kg ha-1; K2O = 60 kg ha-1; FYM = 20 t ha-1).