Migration is largely seen as key component of livelihood diversification strategies to overcome poverty in difficult situations in developing nations. The paper examines migration as a livelihood strategy adopted by rural households to overcome poverty in Telangana State. The majority of the rural households in Telangana State use migration as a way to moderate against risk and unpredicted circumstances. For livelihood diversification, households decide to send members of their families to urbanize cities, where they could gainfully be employed and start sending remittance back home as a way of diversifying the family income sources. These remittances, therefore, form a substantial part of the household’s incomes. The paper, therefore, shows that remittance incomes from migrants positively contribute to improving the living standard of the households.