Plant invasion is a leading threat to biodiversity, ecosystem services and human wellbeing worldwide. In the central Himalayas intentionally or accidentally introduced invasive alien plant species (IAPS) facilitate their own establishment and spread, which is altering forest structure, vegetation composition, species diversity and livelihood. To understand the perception and awareness amongst local communities about invasive alien and native plants and its effect on local livelihood, a questionnaire-based study was conducted in 10 villages of Nainital district, Uttarakhand, India. Household data of 179 respondents were triangulated with key informants such as community leaders, teachers and older people. A majority of the respondents were found to be more familiar with the native species (Berberis asiatica, Pyracantha crenulata and Rubus ellipticus) than IAPS (Ageratina adenophora and Lantana camara). Both the IAPS negative impacts on native biodiversity, ecosystem services and livelihood. During the last two decades IAPS have encroached on various forests and caused a decrease in native species in the study area. According to the local perception, deforestation, forest fire, climate change, increased transport, light weight seed, no use and grazing etc. have been the main factors behind the spread of IAPS. A. adenophora invaded both chir pine (Pinus roxburghii) and banj oak (Quercus leucotrichophora) forests while L. camara remained more prominent in low elevation open canopy chir pine forest. Uprooting is the primary method used to control IAPS in crop fields and forests. The studied villages have not reported awareness and education programs about the IAPS. Our study demonstrates the wide range of perspectives on the threat posed by IAPS to forest ecosystems and natural resources. Education could help to raise awareness about the issue and could be beneficial in managing and controlling invasion in the Himalayan region.