BackgroundIn the face of rising global food demand, climate change, and economic uncertainties, crop diversification has emerged as a crucial tool for achieving both economic and environmental sustainability. In Bangladesh, where the economy heavily relies on agriculture, crop diversification can play a vital role in enhancing farmers' livelihoods and domestic food production.ResultsThis study focuses on Rangpur district, an agricultural hub in Bangladesh, analyzing data from 122 farmers to assess the status, determinants, and effects of crop diversification. The Simpson Diversification Index (SDI) analysis revealed that 29% and 68% of the farmers exhibit very high and high degrees of crop diversification, respectively. The Tobit model identified significant drivers of crop diversification, including education, household size, farming experience, non‐farm income, mobile phone information access, experience with climatic shocks, and land type. Additionally, the Log‐Linear model indicated that each unit increase in the SDI score corresponds to a 2.41% increase in farmers' income.ConclusionThe study demonstrates that crop diversification is a key strategy for enhancing economic sustainability and increasing income among farmers in Bangladesh. By improving both economic outcomes and resilience, crop diversification supports sustainable agricultural practices in the region.