Urbanization, one of the most pressing global issues, with all of its concomitant consequences, is resulting in greater attention among planners and policy makers today than ever before. The present study intends to probe into the subject of urbanization with a specific focus on Delhi, and analysis of the same in the context of changing agricultural land use pattern and rural livelihood. A cross-sectional design was used for data collection from a random sample of 896 farming households. The analysis depicts that during 1951–2001, the urban area of Delhi expanded from 195.8 km2 to 924.6 km2, and the urban population increased from 0.1 to 2.3 million. Information at the household level shows that nearly 63% of the sampled household shifted their occupation from agriculture to non-agriculture, while almost 50% of the respondents reported change in cropping patterns, i.e. food grain versus vegetables, fruits and flowers. Through the application of the multiple linear regression model, the study reveals that residential complexes (p < 0.01) and household industries (p < 0.05) have a positive significant bearing on agricultural land use patterns. The development of transportation networks, orchards and nurseries, and brick kiln are shown to have an insignificant (p > 0.05) correlation. Integrated planning for rural and urban areas may be key for balanced and sustainable urban development of Delhi.