This paper reviews status of public distribution system and its relationship with the problem of food security and poverty incidence among the north-eastern states of India. Poverty indices for all the states in the NE region are calculated. It appears that the PDS is widely accessible to the households in the region; it is lack of purchasing power that comes in the way of ensuring food security in the region. The problem of food security in these states is due to general underdevelopment of the region. Therefore, for improving food security situation in the region, the income generating opportunities are to be created and made accessible to the poor household especially in the rural areas. We also found that the access to PDS does not affect poverty incidence significantly among the north-eastern states of India.