The aim of this research was to determine the diversification level of the activities of rural households in Bosnia and Herzegovina (BiH) and their preferences for dealing with non-agricultural activities. The study was conducted during 2011 by surveying 100 households throughout BiH. It was found that 51% of those households realised additional income outside of agriculture and their diversified activities took up over 30% of their working time. Through the segmentation of the households in the sample, based on size of land holdings by small, medium and large, and by analysing the results obtained by the survey, it was confirmed that a higher level of diversification was achieved by the farms of small and medium size. When analysing the results according to the age of the examinee, the results acquired were unexpected because they showed that the value of non-agricultural income increased with the increasing age of the farm holders. The initiation and development of non-agricultural activities in rural areas, as well as the introduction of higher levels of the processing of agricultural products on the farms, very often are not part of the planning process, but the spontaneous consequence of the inability to ensure existence with the primary activities. One of the reasons for this is the lack of knowledge and skills in the residents of rural areas, and the lack of information about the sources and possible ways of achieving diversified income. The strengthening of advisory services and expanding of the focus of their work from agriculture during consultation to the possibilities and conditions for the diversification of the rural economy can achieve a significant contribution in terms of ensuring the sustainability of rural areas.