Hydrological characteristics and sedimentation loading in Hokersar wetland of Kashmir Himalaya was monitored from November 2000 to october 2001. The compound water budget showed a substantial (91 percent) input from various surface inflows and just 9 per cent through precipitation. Major water discharge (67 per cent) occurs through surface outlets, whilst, 33 per cent is attributed to evaportranspiration and other unaccunted for losses. Relatively low flushing rate (3.74 times/year) and high residence time (97.3 days) contribute to increased nutrient retention in the wetland. The inflow/outflow rates are closed linked to precipitation and water demand in the catchment. Annual sediment accumulation of 16,862.2 metric tonnes (93 per cent) contributed by Doodganga Channel) accounts for gradual filling in of the Kokersar wetland ecosystem.