This study is an attempt to investigate the statistical picture of poverty and inequality of the back ward KBK* region of rural Odisha. Based on unit level state and center pooled data of NSS (National Sample Survey) this paper has been prepared (as the sample size of NSS is not adequate for sub_state (regional) level analysis). A special poverty line has been derived for KBK* using the price index scientifically calculated from the unit level data. The entire population has been distributed into decile classes based on the rank of monthly per capita expenditure. The regional inequality in living standard has been analysed using Gini-coefficient and Lorenz‘s ratio. Finally this paper has studied a comparative statement on poverty and inequality of KBK* region with rest Non_KBK* portion of rural Odisha.