This paper assesses the livelihood strategies of the forcibly displaced Myanmar nationals encamped in Cox’s Bazar district of Bangladesh. Although the predominant source of livelihood of the encamped Rohingya households is supposed to be various sources of assistance and transfer receipts, almost 76 per cent of them report positive income from various sources, including farm activities, enterprises, labour market, remittance, and non-food transfers, despite restrictions on mobility and income generation through employment. While a few of the sources dampen income inequality, others exacerbate it. Similarly, while several factors facilitate participation in income generation both at the extensive and intensive margins, a few others appear to hinder the process. Both the diversity and the level of income appear to be higher for households in the old wave (arrived before 25 August 2017) compared to that in the new wave (arrived after 25 August 2017), possibly due to better integration and adaptation to the local environment and context. The encamped Rohingya households with supplementary earned income and receipts rather than exclusively depending on WFP assistance enjoy relatively better well-being, at least in terms of higher expenditure and dietary diversity. The evidence on the impact of earned income and receipts on household well-being indicators reinforces their appeal for the right to work.