This study measures the impact of internationalization on poverty alleviation in the developing economies. The focus is on the Amani Butterfly Project in Tanzania. Particularly, the study estimates the income generated from the export of butterflies, and measures its impact on alleviating poverty in the community. Also, it identifies challenges encountered during the production and exportation of butterfly products. The study employs primary data with a sample set of 90 butterfly fanners. The findings reveal that over 250 rural households within the study area derive their livelihoods from the forest through butterfly exportation. Moreover, improvements in food security, primary health care and education have also been recorded. However, despite the positive developments, butterfly farming in Tanzania has a number of challenges before developing its full potential. Some are related to pupae production, such as access to production of pupae varieties that are in demand by butterfly buyers, while others are associated with market access, the identification of new markets, product transportation and low prices found in the current markets. The paper concludes by drawing attention to the managerial and political implications, and future research directions.