Abstract Diversification within and outside of small-scale fisheries (SSF) is a common strategy to stabilize revenues and increase resilience following disturbances. Using SSF in Virginia, USA as a case study, Herfindahl–Hirschman Indices (HHIs) were used to characterize individual and fleet levels of income diversification, while generalized linear mixed models were used to examine drivers of diversification behavior. HHI income values indicate that fishers tended to exhibit specialized behavior. More diversified fishers tended to have less interannual revenue variability and higher annual incomes. Decisions to increase or decrease diversification were associated with various factors, including total years of participation, annual income, the type of licenses held, landings levels, participation in marine-related business outside of SSF, and market prices. An understanding of diversification levels and associated drivers of behavior can help fishery managers and governing entities predict how fishers will react to perturbations. Environmental changes that alter species distributions and increase the potential for invasive species, as well as shifting sociodemographics within the fishing industry, will likely continue to influence diversification behavior in the future. Developing strategies to reduce the impact of these events on fishers and fishing communities will help to increase resilience and reduce vulnerability in SSF.