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For many rural households in India, especially small and marginal farmers, agriculture continues to be their main source of income. The current study looked at how livelihood activities affected farmers' socioeconomic standing in Karnataka's aspirational districts. The study was carried out in two aspirational districts, Raichur and Yadgir, in 2022–2023 using an ex post facto research design. Using random sampling, 120 respondents were chosen from 12 villages spread across six taluks. A structured interview schedule was used to gather the data, which were then analysed using frequency, percentage, paired t-test, and rank analysis. The results showed that a variety of aspects of farmers' socioeconomic circumstances were considerably improved by livelihood diversification. Health and nutritional status (52.50 %) to a much greater extent), children's development (39.58 %), migration reduction (45.83 %), and socio-political participation all showed improvements. There was a moderate improvement in education, but there was less of a decrease in reliance on conventional credit sources. Significant increases were found in both farm and non-farm activities, with the largest income gains being seen in government employment, migration, and private employment. Increased household savings in formal and informal institutions as well as improved job opportunities for family members were further benefits of additional livelihood activities. Overall, the study shows that increasing farmers' income, employment, and general socioeconomic well-being in aspirational districts requires diversifying their farm and non-farm livelihood activities.