An increasing body of research has recently drawn attention to India's shifting interface and interdependence between urban and rural spaces. This involves studies about the peri-urban zone's physical, cultural, socio-demographic, economic, and other changes. However, little is known about the sustainability of peri-urban livelihoods in response to these shifts. Using the sustainable livelihood framework as an analytical tool, an attempt is made to explore the status of livelihood sustainability and strategies adopted by the residents. The unit of analysis for this study is villages demarcated in the three zones beyond the municipal boundaries of Aligarh city. Both secondary and primary sources of data are utilized. Methods of data collection include published sources, a review of documents, key informant interviews, focus group discussions, a household survey, and direct observation. The findings of this paper reveal that the peri-urban interface (PUI) close to the municipal limit, i.e., absorbed, is the most vulnerable zone. However, this vulnerability is decreasing with increasing distance from the city. Thus, peri-urban livelihoods are in a satisfactory situation in the intermediate PUI on account of its lower vulnerability. However, the sustainability of the outer PUI is far better than that of the former zones, as it takes advantage of both counts. The results of the study point to the need for a change in urban policy and planning to include peri-urban livelihood sustainability issues and for their holistic development.