This paper examines the impact of land distribution on the livelihoods of farm households in Atlantic Honduras. Using survey data and multivariate analysis, we link the distribution of land among households to the development of distinct livelihood strategies involving the production of particular crops, wage labor, and diverse forms of non-farm employment. The analysis indicates that the distribution of land has a strong influence on the strategic allocation of household land and labor resources to various uses and occupations, which in tum creates structural limitations on opportunities to improve livelihoods and manage land in a sustainable fashion. Concluding remarks point to research and policy issues raised by the analysis.