A field experiment was conducted to assess the impact of habitat manipulation on insect pests infesting Bt cotton (BG I) and their natural enemies at college agronomy farm, B. A. College of Agriculture, Anand Agricultural University, Anand.(Gujarat) during three successive years (2007-08 to 2009-10). The population of sucking pests viz; aphid (Aphis gossypii G), leafhopper (Amrasca bigutulla bigutulla Ishida) and whitefly (Bemisia tabaci Gen) suppressed significantly in cotton plots interspersed with maize @ 10% and cotton + cowpea sown in between two rows of cotton. Extent of bud and green boll damage found to be suppressed in habitat manipulated plots. Minimum bollworm damage was found in the treatment of cotton + maize followed by cotton + cowpea and cotton + sesamum. Enhancement of arthropod natural enemies of cotton pests viz; chrysopids, coccinellids, geocoris bug and spiders due to habitat manipulation have been found which ultimately suppressed the damaging pests and thereby reflected on seed cotton yield. Cotton interspersed with maize registered highest (2504 kg/ha) yield followed by cotton + cowpea (2356 kg/ha). Increase in yield due to cotton interspersed with maize and cowpea sown in between two rows of cotton found to be 48.52 and 39.74 %, respectively.