Dissertation (MA Development Studies)Vanilla (Planifolia) has the potential of improving smallholder farmer’s livelihoods. However, despite its potential, studies on the contribution of vanilla production to livelihood outcomes among smallholder farmers are inconclusive. The purpose of this study was to assess the contribution of vanilla production to livelihood outcomes among vanilla smallholder farmers in Bukoba Rural District. The specific objectives of this study were first, to determine income earned per year from farming and non-farming activities among vanilla and non-vanilla smallholder farmers, second, to determine levels of livelihood outcomes based on assets ownership among smallholder farmers and thirdly, to compare livelihood outcomes among vanilla and non-vanilla smallholder farmers. The study was conducted in Bukoba Rural District and adopted a cross-sectional research design involving 100 respondents where 50 were vanilla smallholder farmers and 50 non-vanilla smallholder farmers respectively. This was done for comparison purposes. Descriptive statistical analysis was used to compute income from farming and non-farming activities carried out among smallholder farmers. The wealth index was used to analyse levels of livelihood outcomes based on asset ownership. Independent t-test was used to compare livelihood outcomes between vanilla and non-vanilla smallholder farmers basing on income and monetary asset value. It was found that vanilla smallholder farmers earned high income compared to non-vanilla smallholder farmers. Majority (62%) of the vanilla smallholder farmers were earning between 1,500,001-2,500,000 TZS while (28%) of non-vanilla smallholder farmers were earning the same amount. The study found that vanilla smallholder farmers had better livelihood outcomes in terms of higher income, better housing conditions and asset ownership compared to their counterparts. The Independent t-test revealed that there was significant difference in livelihood outcomes (P≤ 0.000) between vanilla and non-vanilla smallholder farmers. The study recommends that smallholder farmers should be sensitized to engage in vanilla production because it stands a better chance of improving livelihood outcomes of smallholder farmers unlike other traditional crops produced in the study area.