The study-assesses the impact of Boro rice on farmers' income and employment using the farm level data. The yields of Boro rice are higher than the kharifrice. Though its cost of cultivation is higher, the net returns over cost A are positive. Cultivation of Boro rice has been found more profitable compared to other crops grown during this season in this area. Small farmers put a larger area to Boro rice cultivation and they are likely to be benefited the most from its expansion in the flood-prone areas. The impact of Boro rice cultivation on employment has also been found significant because a majority of the farm labour remains unemployed or under-employed due to lack of employment opportunities on and off the farm. However, the farmers have been noted to be risk averse due to high cost of production and terminal drought. Introduction of short-duration and drought-resistant varieties along with provision of short-term credit can help the expansion of Boro rice cultivation in the flood-prone district of Madhubani in Bihar.