Medical tourism is a fast-growing industry at the global level with South-East Asian countries receiving the bulk of tourists seeking medical or other wellness benefits. The paper highlights the special positioning of India in the area of medical tourism. There is tremendous scope in Kashmir for medical tourism to achieve new highs. Kashmir has potential to market the health and wellness services at comparatively cost-effective prices than Western, European and other South-East Asian countries. Kashmir is blessed with the unexplored natural beauty which is a basic condition for tourism. There is the abundant number of attractions in the shape of hill resorts, pristine clear water bodies, world famous lakes, hot springs, and other places which can revitalize the body and the spirit. However, to realize this potential a lot of effort is needed including adequate infrastructure and marketing to Middle-Eastern, European and other national tourists. Further, an effort and willingness are required on the part of government and entrepreneurs to build world-class infrastructure and other facilities.