The study was carried out at the Baitadi district's Dilashaini rural municipality. The study area was primarily based on agriculture. Farmers in the studied area adopted a complex type of farming system that includes livestock, crops, fruits, forestry, and vegetable farming. This study was mainly conducted to identify key problems faced by farmers and the socioeconomic importance of livestock farming. Semi-structured questionnaires were used to randomly choose respondents for a key informant interview. 61 households were randomly selected without the replacement method. The results showed that most of the households were headed by men (52 households). The primary occupation was agriculture (72%), followed by business (22%). A benefit-to-cost ratio of 1.65 was discovered. Milk was priced at 48.08 rupees per liter. We found feeding management to be the main problem. Farmers invest a huge amount of their income in managing feed for livestock. Natural breeding was largely prevalent in the study area (96%); artificial insemination was still rare. In the studied area, the dairy sector was profitable, so it emphasized improved breeding programs, improved feeding management, and the establishment of well-managed dairy cooperatives, which helped in the development of the rural economy and the lifestyle of farmers.