Mountain ecosystems provide vital services crucial for nature and global humanity. Understanding mountain communities’ perceptions and demands for these services is essential for harmonious coexistence between people and nature in a human dominated landscape. This study applied importance-performance analysis, a globally applied, user friendly and cost-effective management tool, to assess community’s perception and prioritization of ecosystem services across watersheds, with a comparison of perceptions and priorities between indigenous and non-indigenous groups. Applying a mixed-method approach, including a literature review, qualitative interviews, participant observations, and a structured survey, our research has identified significant importance-performance disparities for 13 ecosystem services. Community members expressed their satisfaction for three mountain ecosystem services: (1) freshwater, (2) air quality regulation, and (3) water regulation and purification. While, six other services: (1) food, (2) natural medicines, (3) natural hazards regulation, (4) nutrient cycling, (5) recreation and ecotourism, and (6) spiritual and inspirational values are reported as services require urgent policy attention. The findings emphasize integrating diverse community perspectives into adaptive
policies to ensure sustainability and well-being. This study underscores the need to address local concerns of upstream and downstream communities and indigenous communities while tackling local and global environmental challenges.