Human–wildlife conflict has emerged as a major socio-economic and environmental challenge in agrarian regions located near forest ecosystems. In Kerala, increasing interactions between wildlife and farming communities have intensified due to habitat fragmentation, deforestation, agricultural expansion, and changing land-use patterns. This study examines the impact of wildlife conflict on agriculture and rural livelihoods in Chaliyar Grama Panchayat of Malappuram district, Kerala. Using a descriptive research design, primary data were collected from 40 farmers through structured questionnaires and interviews during 2025–2026. The study analyzes socio-economic conditions, crop damage, income loss, compensation mechanisms, and the effectiveness of government policies. The findings reveal that elephants and wild boars are the major wildlife species causing crop damage, resulting in significant annual income losses and food insecurity among farming households. Most respondents considered compensation mechanisms inadequate and delayed, while existing policies were perceived as only slightly effective. Despite repeated losses, the majority of farmers continue agriculture due to lack of alternative livelihood opportunities. The study emphasizes the need for timely compensation, improved preventive measures, crop insurance schemes, and sustainable community-based management strategies to reduce conflict and strengthen rural livelihoods.