Dairy sector can play an important role in determining future prospects for the employment generation and poverty alleviation in the country. Since, earning reasonable profit has become a major yardstick for dairy farmers for taking decision about which type of dairy farm they should go with, this study would prove useful for policy makers. Keeping all these in view, the present study entitled "Economic Analysis of Rural and Periurban Dairy Farms in Ludhiana District of Punjab" has been undertaken with objectives to work out the cost of milk production and returns on rural and periurban dairy farms, to assess the labour employment on different dairy farms, to estimate the input-output relationship and resource-use efficiency in milk production, to study the breeding, feeding and health care management constraints faced and practices followed by the dairy farmers. To achieve the above objectives, 1 village and 1 periurban area each were randomly selected from 2 tehsils, which fell under Ludhiana district of Punjab with a sample of 40 (25 rural, 15 periurban) dairy farms selected randomly and data was collected for 3 seasons.