Agriculture has been the mainstay of the Indian economy and society, particularly the rural economy since the Indian independence. However, the contribution of agriculture to the nation and rural population in terms of GDP and offering livelihood, respectively, is shrinking. The rural population no longer depends mainly on the agricultural activities. They are now shifting to the rural non-farm economy for their living through occupational diversification. With the emergence of new opportunities in the urban centres, some of them are also migrating to such centres. Hence, there is a rising disenchantment among the rural population towards agriculture. Based on one such similar concern, this study explores the nature and growth of non-farming activities in rural localities. It also seeks to understand the patterns of occupational diversification among various social classes in rural Bundelkhand, Madhya Pradesh. Both primary and secondary sources have been used for the study. Using purposive sampling, two villages are selected from the Bundelkhand region of Madhya Pradesh for the comparative analysis. A mixed methods approach is employed to collect the data using research techniques like Household surveys, individual interviews, a few case studies, and observation. Overall, the study attempts to understand the process of rural transformation as well as the impact it has on those involved in it. As a result, the study intends to contribute to the larger debate in the literature on rural transformation and agrarian change.