Improving the farming system to attain the household level self‐sufficiency, land utilization efficiency and sustainable livelihood security depends on better socio‐economic and ecological aspects of the systems practiced by the small farmers in the semiarid regions of India. The higher sustainable livelihood security index (SLSI) in the integrated crops‐livestock system helps to restore economic and ecological sustainability. The aim of this study was to analyze how various modules of farming in different combinations have interacted with the diversification of existing systems. We used the ecological security index (ESI), economic efficiency index (EEI), and social equity index (SEI) to produce a SLSI of improved integrated farming system (IFS) compared with benchmark farming in semiarid regions. In this study, different existing IFS comprising of seven modules (field crops, dairy, goats, poultry, horticulture, fishery, and apiary) in different combinations were examined. Results revealed that 72.5% farmers preferred to integrate two modules, where as 95% of farmers adopted field crops + dairy (FC + D) in preference to other modules. The sustainability indicators: ESI (+43.3%), EEI (+16.0%), SEI (+11.6%), and SLSI (+6.0%) were improved in the FC + D farming system to a greater degree than other IFS module combinations. Similarly, improved IFS interventions also increased sustainability indicators over benchmark farming. Based on large scale household studies over 5 years, our findings suggest that the improved IFS succeeded in providing a wider array of livelihood security than existing practices. Hence, the paradigm shift from component approach to an IFS‐based resilient system, which is economically viable, environmentally sustainable, and socially acceptable, is needed for development of semiarid regions.