The integrated watershed management approach is proved to be a suitable strategy for achieving holistic development in the semi-arid and arid regions through collective action. Among various livelihood options, livestock sector has emerged as one of the fastest-growing agricultural sub-sectors in India. However, there exists considerable scope for further development of livestock sector in watershed areas with the concerted effort of multiple stakeholders to improve livestock production and productivity. In this context, an attempt was made to study the present status and issues in livestock sector, estimate gross value added (GVA) and propose technical interventions for integrated watershed management project implemented in selected villages of Ballari District, Karnataka state using primary and secondary data. The study has identified various issues and constraints viz. presence of low yielding non-descript cattle, low milk yield, less breedable population, lack of green fodder, etc. in the project villages. Further, the study also estimated that contribution of GVA was highest from Kurekoppa village (Rs 647.06 lakh) among the project villages, while it was highest from buffaloes (Rs 776.35 lakh) among the different species reared in the villages. The study also found that per animal GVA was very low in the project villages for different species. Depending on the status and issues in the project villages, the authors have proposed technical interventions after discussion with multiple stakeholders through which there would be an improvement in the production and reproduction performance of the livestock, ultimately leading to increase in GVA from the project villages.The authors also propose that these strategies are relevant for livestock sector development in SAT regions of Karnataka. However, need-based research and extension activities by different organizations in the region may be emphasized for the benefit of farming community.