Microearthquake activity in the environ of proposed 161.0 m high rock fill dam at Tipaimukh in Manipur state is mapped employing a temporary local network of portable smoked paper seismographs. More than 700 local earthquakes (S-P time ≤ 25.0 sec and 0.2 ≤ M ≤ 4.4) were recorded and 103 could be located. Distribution of contemporary seismic activity follow NW-SE trend and is in general agreement with the regional tectonic setting. The microearthquakes are originating at shallow depths and possibly related to the bending and upward buckling of India plate thrusting beneath the Burmese plate. A cluster of microearthquake activity is delineated about 25 km to the east of the dam site. Seismic activity corroborating with the trends of lineaments seems to be related to the geological structure controlling the course of the Barak river. Geologically mapped local faults in the reservoir region did not exhibit microearthquake activity. A dense station seismological network should be operated in the close proximity of the dam site to map the seismic activity on more precise scale.