The research work was carried out to find out the extent to which Fadama III Project has contributed to employment generation in Soba and Kudan Local Government Areas of Kaduna State. It explored the various employment opportunities opened by the project in Fadama communities of the two LGAs. Two hypotheses were stated and tested in the research work. The research work is anchored on Livelihood Approach. The research employed the use of survey research design. It also adopted a multi-stage sampling technique. Data was collected through Focus Group Discussions, Key Informants Interviews and questionnaire administration. The data collected was analysed qualitatively and quantitatively. The statistical tool used for the analysis was spearman correlation coefficient. The result of the analysis revealed that the pilot assets like milling machines, work bulls and vegetable grinders run by crop farming and processing enterprises respectively were used as means of livelihood for FUGs andtheir paid employees. The result of the spearman correlation also revealed a strong correlation between the pilot assets and employment generation in Fadama communities of the two LGAs.