The number of people living under poverty is still very high despite numerous poverty alleviation programs launched over the years. Although several development models and approaches have been practiced, 38% population in Nepal still lives in dire poverty. Many of the projects to trim down poverty have been supported by multi and bilateral agencies in one or the other form. However, assessment of impact of such interventions has yet to emphasize specifically at micro level. A randomized household survey was conducted to collect field data applying a multi-stage random sampling technique for 60 households in the mid hills, Nepal. The data have been analyzed using descriptive statistics, qualitative tools and econometric models. To net out the impacts due to project intervention on peoples’ livelihood, income measures, consumption pattern, and head count index of the respondents have been used. The results of the regression model reveal that family labor working on the farm has negative, whereas total livestock, and non-farm activities reveal positive relationship on the level of household income. Despite having very low size of land holding, beneficiary are motivated to allocate 9% of the arable land to cultivate forages because of the project’s implication. Positive attitude towards continuation of project activities implies that human capacity of the beneficiary has been improved substantially.