This paper attempts to have an examination of the Rural Non -Farm Employment situation in India and Thailand over the last three decades. The important findings of this study are: (a) Both in India and Thailand, there has been employment diversification in rural areas. However, this diversification has been more pronounced in Thailand than in India.(b) There is regional variation with regard to the incidence of rural non-farm employment in both Thailand and India. (c) There is a gender bias with regard to the incidence of rural non-farm employment in India. (d)Agricultural growth is one of the important determinants of RNFE in both the countries. (e) Non-farm sector is heterogeneous across activities and regions. Public policy to develop this sector therefore should be activity and region specific.