Poultry farming is a cornerstone of India’s agricultural sector, providing livelihoods for millions. However, the industry faces disease outbreaks, birds' and humans' health welfare concerns, and environmental challenges. To formulate a sustainable resolution, this review explores livelihood diversification within the Indian poultry farming sector. It examines current practices, opportunities, and obstacles, providing insights into sustainable agricultural practices and rural development strategies. By studying socio-economic factors, emerging trends in agrarian entrepreneurship, and the impact of diversification on rural livelihoods, the paper offers comprehensive recommendations for policymakers, stakeholders, and practitioners. This review also employs a multidimensional approach, utilizing qualitative and quantitative research case studies to present a holistic understanding of diversification in the Indian poultry sector. It aims to foster resilience among poultry farmers through practical recommendations and policy implications, promoting sustainable development and diversified livelihoods.