This review explores dairy farming as a strategic avenue for promoting sustainable rural development and empowering women in the Kalaburagi and Bidar districts of Karnataka. These regions, predominantly agrarian with limited industrial growth, face socio-economic challenges such as unemployment, income inequality, and gender disparity. The need for the study arises from the pressing requirement to identify inclusive and sustainable livelihood options, particularly for rural women who often remain on the periphery of economic participation. The review synthesizes existing literature, field reports, and policy frameworks to assess how dairy farming has evolved as a livelihood model. Findings indicate that dairy farming not only enhances household income and nutritional security but also significantly boosts women’s socio-economic status through increased decision-making roles and financial independence. Initiatives led by self-help groups (SHGs), cooperatives, and government schemes have further facilitated access to resources, training, and credit support, thus strengthening women’s participation in the dairy value chain. The study underscores the dual impact of dairy farming—contributing to rural economic resilience while acting as a catalyst for gender empowerment. However, persistent challenges such as limited access to veterinary care, fluctuating market prices, and lack of infrastructural support need to be addressed. The review concludes by highlighting the scope for future research in evaluating the long-term sustainability of dairy farming under climate variability, as well as the need for gender-sensitive policy interventions that ensure equitable growth across rural sectors.