This study examines income diversification and inequality among rural households in Bangladesh in 2022- 23, focusing on agricultural and non-agricultural sources of income. The analysis includes three districts: Chadpur, Sirajganj and Rajshahi, with specific economic activities. Data were collected through household surveys that collect income from agriculture, livestock, fishing, services and industries, and demographic data. Rajshahi has the highest income, due to high income from cattle, while Chadpur has the lowest. The results show significant income disparities, high levels of animal activity and differences in economic activity between regions. Larger houses in Rajshahi reflect changes in family structure. The main challenges identified were land fragmentation, climate change and limited access to finance and infrastructure. Recommendations for policy interventions include targeting support to low-income areas, investing in livestock development, promoting income diversification, improving infrastructure, strengthening climate livelihoods, expanding access to finance, the adoption of technology and the implementation of family planning programs. These strategies aim to reduce income inequality, improve economic opportunities and promote sustainable development in rural Bangladesh.