Betula utilis is an indicator species of subalpine forest in the western Himalayan region, performing dynamic ecological functions and providing significant ecosystem services to rural mountainous communities that support livelihoods in harsh environmental conditions. The current study was designed to investigate the ecosystem services and regeneration patterns of Betula utilis forest in the subalpine zone of Kashmir, western Himalayas. The questionnaire method was used for collecting ethnobotanical and fuelwood data. The systematic quadrat method was used for assessing the regeneration patterns of B. utilis forest at 15 sites. B. utilis is a versatile plant with significant religious and cultural values, as well as being used for the treatment of various diseases in humans and animals. Results of fuelwood consumption revealed that mountainous rural communities consumed an average of 7.18 kg/capita/day. The linear regression analysis showed that fuelwood consumption values increase along the altitude of the investigated area. As altitude increases, the rural population uses more fuelwood for heating purposes to sustain their lives in harsh environmental conditions. The average seedling density was calculated at 1351.47/ha in the study area. Significant regeneration was observed in some sites, while others showed a lower regeneration rate due to immense anthropogenic pressure. The seedlings and saplings showed a higher number, ranging from 1429/ha to 911/ha, 1915/ha to 495/ha, 1054/ha to 623/ha, and 1493/ha to 436/ha on the south and north aspects, respectively. The north-facing aspect depicts more seedling and sapling numbers due to favorable conditions, whereas the south-facing aspect showed fewer numbers as compared to the north-facing aspect. Climate change and anthropogenic pressure significantly affect the long-term viability of Betula forests in subalpine zones because of their restricted ecological niches. Immediate management strategies are required to minimize these threats and implement effective conservation strategies and a sustainable forest management policy for the preservation of the subalpine forest in Kashmir.