Experiments were conducted during the winter seasons of 1992–93 and 1993–94 at the Lumle Agricultural Research Centre and its off-station research site at Lopre in Nepal to study the agronomic performance and profitability of barley (Hordeum vulgare) and peas (Pisum sativum) mixed intercropping (that is, without any row arrangement) in the subsistence farming systems of the Nepalese hills. Sole crops of barley (cv. Bonus and Local) at 100kg seed ha−1 were compared with a pure stand of peas (cv. Tikot Local) sown at 60kg seed ha−1 and with peas intercropped with both varieties of barley at 100:40 or 100:20 kg seed ha−1. Results across two locations for two seasons showed that the barley+peas intercropping was advantageous in terms of overall grain yield, land equivalent ratio (LER), monetary advantage, economic return and dietary provision in the subsistence farming system. It also provided yield stability under adverse climatic conditions. Barley genotypes differed in their suitability for intercropping with peas. The yield of Local barley was reduced when peas were intercropped with it at both seed rates but this was not so with Bonus. The most appropriate combinations to realize the maximum advantage from intercropping were Bonus barley+peas at 100:20 kg seed ha−1 and Local barley+peas at 100:40 kg seeds ha−1. A combination of Bonus barley and peas at 100:20 kg seed ha−1 enabled farmers to harvest an additional 400 kg grains ha−1 from peas without significantly reducing the grain yield of barley. The study also verified through formal experimentation that the traditional practice of mixing barley and peas is advantageous.