The focus of the study was to evaluate the financial profitability of aromatic rice production and its impacts on farmers’ livelihood in selected areas of Tangail district. A total of 60 farmers of some selected areas of Tangail district were selected as sample for achieving objectives of the present study. To collect data, a questionnaire was administrated through face-to-face interviews. Data were analyzed with descriptive statistics, multiple regression analysis, partial budget analysis and sustainable livelihood approach. The result of descriptive analysis revealed that the average family size of aromatic rice growers was 4.9. Total costs for aromatic rice was estimated at Tk. 51299.5 per hectare. The average per hectare gross return of aromatic rice was Tk. 82666.4. In the study area, gross margin for aromatic rice was estimated at Tk. 37269.6 per hectare. Thus, the net return was estimated at Tk. 31366.9 for aromatic rice. The undiscounted benefit -cost ratio of aromatic rice production was 1.61 implying that the aromatic rice production was profitable. Moreover, the result of partial budget analysis revealed that aromatic rice production have higher income and better livelihood than those who are producing non-aromatic rice in the study area. It is evident that average annual income of aromatic rice farmers was Tk. 177606.6. About 60 percent of aromatic rice farmers claimed good health condition, better schooling and education and increasing saving in the study areas. Cobb-Douglas production function analysis was done to determine the effects of variables mainly human labor, power tiller, seed, fertilizer, irrigation, insecticides and insecticides on gross returns of aromatic rice production. Estimated values of the relevant coefficients revealed that among the included variables human labor, seed, fertilizer, power tiller and irrigation had significant impact and insecticides had insignificant impact on the per hectare output of aromatic rice production. The study also identified some problems faced by the farmers’ in producing aromatic rice and probable solutions relating to those problems. Finally, some policy recommendations based on the findings of the study were suggested.