The source of livelihood varies amongst the Pacific Island Countries and also within a country; between urban and rural areas. Most Pacific Island Countries (PICs) and their households rely on subsistence activities and agriculture for their livelihood. This research was based on surveys conducted in Piliura and Tassiriki villages in Vanuatu and Vaiaku, Se-nala and Tumaseu villages in Tuvalu, which involved developing a methodology for household surveys to elucidate issues linked to liveliho od. The analysis revealed th at the major sour ce of household inco me in Vanuatu stud y sites was from the sale of products, while in Funafuti (Tuvalu) households earned the majority of their income from wages/salaries. However, in Tumaseu village (Tuvalu) the households generated their source of income from both wages and sale of products. In all the study sites, food was the major household expense. This study was aimed at al-lowing researcher s and decision makers a better understanding of th e economic realities for housuseholds in PICs.