The consequences and factors influencing livelihood diversification among agricultural households in Andhra Pradesh, India are examined in this study. With the help of primary research from the South Coastal region and data from the National Sample Survey Office's (NSSO) 72nd and 79th rounds (2014-15 and 2022-23), respectively, the analysis examines patterns of diversification, their effects on Poverty, Consumption, and Household Income, and also touches upon important influencing factors. The findings show that more than 85% of Andhra Pradesh households pursue several sources of income, with wage-and animal-farming combinations being typical. Diversification lowers the prevalence of poverty and greatly increases income by up to 84%, particularly into non-farm sectors. Household size, education, land ownership, access to technical assistance, and geographical characteristics such as debt (93% of households) are also determinants. The multinomial logit model emphasizes the benefits of institutional support and human capital. In order to increase resilience in an agrarian State, policy implications center on expanding non-farm opportunities and credit availability.