Livelihood diversification is utmost important in order to reduce vulnerability and to improve standard of living of farmers. The study was undertaken in Uttar Dinajpur and Darjeeling districts of West Bengal, India. Diversification index of study area was 0.46. Darjeeling district was more diversified compared to Uttar Dinajpur district. The single most diversification activity was trading, with 12.03 per cent of adults diversified into trade. Significant percentages of women (38.31%) are involved in diversification activities. In low income group, degree of diversification rises with per capita income rises. The greater the degree of diversification, the greater the ability to cope with temporary shocks. Majority of the successful diversifiers (40.98%) had moderately high success in their diversified activities. Majority of the diversifiers (62.50%) under the high success category were adopted non-farming nature of diversification along with farm diversification.The factors like number of Livestock, resource mobilization potentiality, contact with extension personnel,share of non-farm income and dependency ratio were major discriminating factors between success and failure.