Abstract: The Kashmir Valley, known for its breathtaking natural beauty, faces complex socio-political and environmental challenges that obstruct sustainable tourism development. This paper explores the dynamic interaction between policy frameworks and public-private partnerships (PPP) in promoting sustainable tourism practices in the region. Using a qualitative research design based on document analysis, stakeholder interviews, and policy reviews, this empirical study identifies key policy gaps, implementation bottlenecks, and opportunities for collaborative tourism development. Findings highlight that while initiatives like the Swadesh Darshan and National Tourism Policy 2022 offer a vision for sustainability, actual outcomes are hindered by fragmented governance and limited local participation. The paper proposes a multi-tiered governance model integrating local communities, private enterprises, and public institutions for inclusive and resilient tourism. It contributes to the academic discourse by offering pragmatic insights for tourism governance in conflict-prone areas.