The assessment of the existing pattern of milk and milk products consumption across different socio-economic groups in a particular area is of great strategic importance in the formulation of suitable marketing strategy and comprehensive Dairy Development Programme. An investigation on consumption pattern of milk and milk products was conducted on 100 sample households selected from rural and urban areas of North Tripura District in 2008 using multistage random sampling technique. In rural area, it was found that 80 per cent sample households consumed milk powder, 66 per cent liquid milk, 64 per cent sweets, 36 per cent used ghee and 34 per cent consumed curd. In urban areas, 90 per cent households consumed milk powder, 80 per cent sweets, 70 per cent liquid milk, 42 per cent used ghee and 40 per cent consumed curd. The share of expenditure on food items decreased while that of non-food items increased in both areas with the increase in total per capita expenditure. In rural area, liquid milk, curd, ghee and total milk and milk products were elastic whereas milk powder and sweets were inelastic. In urban area, liquid milk, ghee and total milk and milk products were elastic whereas milk powder, curd and sweets were inelastic. However, the degrees of elasticities were higher in rural areas. Expenditure on non-food items, meat and eggs exerts negative influence whereas expenditure on cereals, other food items and education exerts positive influence on the expenditure on milk and milk products in both rural and urban areas. Gini concentration ratios revealed that the magnitude of inequality is more in case of total expenditure than that of milk and milk products in both areas.