We analyze land fragmentation and its implications for production diversification in rural Albania. We find that land fragmentation stimulates significantly more diversification for households which use a larger proportion of agricultural production for self-consumption than for more market-oriented households. Our results indicate that the land fragmentation contributed to food security improvement by increasing the variety of on-farm produced foods for household self-consumption, thus ensuring a higher likelihood of meeting nutrient requirements that can promote good health of rural population in Albania. Acknowledgement :