This study was conducted in the wetlands of the Little Ruaha sub-catchment to assess livelihoods and economic benefits of wetland utilization. The Specific objective were to; (a) identify socio-economic activities undertaken by local communities dependence in wetlands of the Little Ruaha sub-catchment (b) identify crops grown in wetlands of the Little Ruaha sub-catchment during both wet and dry seasons, (c) assess the economic value of wetlands outputs to household income and food security, (d) determine factors that influence utilization of wetlands resources in the Little Ruaha sub-catchment. Purposeful and simple random samplings techniques were employed to select respondents whereby 120 respondents were selected. The data were collected through structured questionnaires and Focus Group Discussion (FGD). Descriptive statistical analysis was used to analyse the qualitative and quantitative data. Gross margin analysis was used to estimate total economic benefits of wetlands utilization; food available for consumption method was used to assess food security; contingent valuation method was used to assess the contribution of wetlands services to household welfare and linear regression analysis explored the factors influencing utilization of wetlands resources. Valley bottom activities include agricultural production practiced by over 98% of the population followed by livestock keeping and other wetlands outputs. Activities not directly related to valley bottom included petty and major businesses and government employment. Valley bottom wetlands contribute 15% to household food security and 95% to household income that is equivalent to Tshs 128 209 (US$103) and 3 234 721 (US$ 2588) per household per year. Age, farming experience, access to markets, number of dependants and household size significantly influenced wetlands utilization. Valley bottom wetland cultivation contributes significantly to household economy and food security. The study recommends planning for wetland friendly agricultural activities to ensure wetlands conservation and sustainable contribution to household economy and food security.