Contemporary literatures on rural livelihoods reveal these days rural livelihoods are highly diversified and largely dependent on nonfarm activities in most of the places. An inquiry of this problem in context of Sikkim has found a similar story. Using data obtained from 300 rural households through multistage random sampling from all four districts of Sikkim, this paper tries to see the situation of nonfarm livelihoods in rural Sikkim. It was found that casual nonfarm employment occupies the most common livelihood source, followed by regular nonfarm employment and self-employment. Nonfarm income occupies a high share in household income in most of the households. Factor causing nonfarm work participation are average education of the households, credits and finance, Household asset possession, family size and operational holdings. Despite farming activities being central to several rural households, nonfarm income occupies a higher share in most of the cases.