Many critiques negate the term 'livelihoods' as one of those new buzzwords in the development jargon. Suddenly everyone seems to be busy promoting livelihoods of poor. Many are trying to bring their past experiences into the framework of livelihoods, to gain some credibility. Irrespective of the criticism associated with the term, many agree that the framework of livelihoods provides an over arching and comprehensive understanding of the reality in a systematic manner. The contribution from international donors (SDC, DFID, OXFAM, UNDP and others) and academic institutions (IDS, IRMA and others) in developing conceptual frameworks and crystallizing the philosophy was well recognized. Watershed Development program also tried to expand its scope by adopting the terminology of livelihoods and tried to rediscover itself in Andhra Pradesh. This paper tries to analyze the present preparedness of watershed program in addressing the livelihoods concerns. Conceptually, can watershed program cont