Youth unemployment remains one of the most pressing socio-economic challenges in India, particularly in geographically remote and economically underdeveloped regions such as Arunachal Pradesh. School dropouts constitute a vulnerable segment of the youth population because they often lack the educational qualifications, technical competencies and financial resources required to secure stable employment. Recognizing this challenge, the Government of India launched the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) by the ministry of Skill Development and Entrepreneurship(MSDE) to provide industry-relevant skill training, certification and opportunities for wage and self-employment. The present study examines the role of PMKVY in promoting entrepreneurship among school dropouts in Changlang and Papum Pare districts of Arunachal Pradesh. It explores how vocational training has enabled beneficiaries to acquire practical skills, develop entrepreneurial aspirations, generate self-employment opportunities and improve their socio-economic conditions. The study adopts a descriptive and analytical research design using both primary and secondary data. Primary information is collected from PMKVY trainees through structured questionnaires and interviews while secondary data are obtained from government reports, published articles, books and official documents. The findings indicate that PMKVY has significantly contributed to enhancing technical skills, self-confidence, entrepreneurial awareness and income-generating capacities among school dropout trainees. Many beneficiaries have established micro-enterprises in sectors such as tailoring, weaving, beauty and wellness, automobile servicing, food processing and handicrafts. However, the study also identifies several challenges, including inadequate access to finance, weak post-training support, limited market linkages, infrastructural deficiencies and insufficient entrepreneurial mentoring. Strengthening institutional support, financial inclusion, and continuous capacity-building initiatives can substantially improve the effectiveness of PMKVY in fostering sustainable entrepreneurship and reducing unemployment among school dropouts in Arunachal Pradesh.