Rural households in many different contexts have been found to diversify their income sources allowing them to spread their risks and to smoothen consumption. Generating diversified incomes for a majority of the rural poor is an essential component of a successful rural development strategy. This paper identifies the determinants of income diversification among Rwandan households using unique panel data obtained from the Integrated Households Living Conditions Surveys of 2011 and 2014. It applies a binary logit panel model to a representative sample of 3,839 households across Rwanda controlling for latent household specific factors. It also conducts a Hausman test the results of which show that the random effect estimates were more efficient than fixed effect estimates (Chi2=20.73 and Prob>Chi2=0.1891). The results reveal that education, access to ICT and urban areas were among the most important factors that influenced livelihood diversification given that p <0.05. We also found that other measures of household specific factors were important (for example, the age and gender of the household head along with asset endowments). From these results, it is recommended that professional training, internet access through phones and wireless and urbanization should be enhanced so as to enable households to diversify their sources of income and thus improve food security for their family members.