In India, the concept of Self-Help Groups (SHGs) has emerged as model to alleviate poverty and improve overall conditions of rural poor. The increasing number of SHGs and Mirco-finacing Institutions every year has shown its potential, however, sustainability of it has always been questioned. The present study basically assessed the role of Self-Help Groups in poverty reduction, its successiveness in generating income, improving quality of life of its members and empowering the poor in mountains of Uttarakhand. The study is primarily based on the primary data, collected in the village of Bhilangana valley of district Tehri Garhwal. This study takes into account the members and office bearers of the Self-Help Groups and other stakeholders like government officials, NGO representatives and representatives of Pachayati Raj Institutions for better understanding the process through which the members of Self-Help Groups build up their income generating sources and improve their quality of life. To figure out the impact of Self-help Groups on its members life Participatory Rural Appraisal (PRA) methods, interview schedule, observation guide have been used. The results show that the Self-Help Groups have increased awareness among the members and have provided sufficient opportunities to combat with poverty.