The present work impact of dairy farming in generation of income- a study in rural Telangana area is a humble attempt to explore the economic status of the rural milk producers in selected district of Telangana state region. The methodology based on an extensive database helps to bring out certain unique and interesting observations. The major finding and suggestions given in this study may help to the Dairy Co-operative societies and economic development of milk producers.Dairy farming is developing day by day. Dairy farming is in the direction of revolution but yet there is a problem of milk production and selling. There is sustainable growth in the rate of milk while weak co-operative societies, corruption, increasing competition, reduction in quality of milk, faulty management, and increasing loss are seen in rural Telangana state/ study region.