Carrots are emerging as a crop of choice among many smallholder farmers due to thier affordable management schedules, quick maturing and high returns per acre; thus improving directly their livelihood. Despite its potentiality, it is not clearly known how the crop farming contributes to the household livelihoods among farmers in the study area. This cross-sectional study explored the contribution of carrot farming on the households’ livelihood in Arumeru district, Arusha Tanzania. The study employed a multistage sampling technique to select 150 smallholder farmers. Semi-structured questionnaires were used in data collection and then analysed by descriptive statistics, profit gross margin and sustainable livelihood analysis. The study results determine that profit generated in carrot farming was approximately 23.1% gross profit margin per acre. This implies that it is a profitable activity in the study area. More, the results show that carrot farming enhances farmers’ livelihoods through improving access and control to human asset. The study recommends that promotion of carrot farming should be sustainably to accommodate poverty eradication strategies among households. The other stakeholders should invest efforts in promoting carrot farming which is evidenced to improve people’s livelihood. More, financial services should be accessible and reliable to facilitate the farming processes. Moreover, extension officers should invest their efforts in providing necessary trainings to farmers. Much more, the study recommends more research on the welfare and postharvest losses of carrot farming in the study area.