The global warming and emission of greenhouse gasses pushed the world economy towards renewable sources of energy. Bioenergy is one of the major types of alternative energy source. Pakistan has agriculture economy with significant number of livestock that contribute to economic activities at national level. Historically, Pakistan faced a greater problem with respect to the adoption of biogas energy. This study evaluates the socio-economic impact of biogas plants on the livelihood of two Tehsils of District Sargodha. It is a quantitative study. A structured questionnaire formulated to collect the primary data. Structured Equation Model employed to interpret and analyze the data. Most of the plants were 10m3 in size, which used 50-60 Kg of dung daily to produce enough gas to fulfill the requirement of the household. It is revealed that wood consumption decreased from 28,080 to 2,520 kg annually since the Biogas plants are functional. Biogas plats reduced the fuel expenditure as in some of the cases; households are able to save up to Rs10000 per month. It added to save the time of buying and collection of wood as it usually took time between 1 to 2 hours daily. Furthermore, Biogas completely substituted the use of wood or Liquid Petroleum Gas (LPG). However, it is observed that in the month of January and December due to low ambient temperature gas produced from biogas was not sufficient, so wood and dung cakes were used to meet the daily cooking requirement. It is concluded that the impact of biogas plant on the livelihood of people is positive. Involvement of government and public is essential for the expansion of biogas technology throughout the country as a cheap alternative source of energy. Supervisor:-Dr Usman Mustafa