Myanmar in which 70 percent of the population is rural people relies on agricultural sector for its economy. It contributes about 37.8 percent of the country’s GDP and employs about 50 percent of the labors (FAO, 2020). However, Myanmar’s agricultural sector is not well developed and does not stand as reliable livelihood for the people, especially for the youths, in rural areas. Hence, the people in rural areas have to seek more livelihood opportunities like leaving their farmlands and moving to other places for work. This situation has impact both on youths and on the agricultural sector which needs youths’ capacities for its development. Therefore, this study focuses on the challenges for the youths in rural areas in approaching their livelihoods, their contribution to agricultural development and how to support them in enhancing sustainable livelihoods in rural areas. This study is conducted through qualitative methods with the use of case study of Pa-O SAZ located in Southern Shan state of Myanmar. The findings result that youths have more challenges for access to natural capital and less challenges for access to physical, social and human capitals. Another significant finding is that both youths and the elders have challenges for access to knowledge or information on their livelihoods. The strengths of the youths for agricultural livelihoods are having more capabilities to adapt with new techniques, innovative ways as well as to connect with varieties of people. For their livelihoods, the youths make decision depending on the factors of having experiences and exposures, support from government and organizations, education, parents and families’ background and access to finance. This study also argues that sustainable livelihood is not only about getting more wages and profit but also about having job and social security. Though agriculture is not promising and reliable work in terms of wages or profit, it can still be regarded as a main livelihood in terms of sustainability in Pa-O SAZ. Hence, diversification becomes the most preferred livelihood strategy for all of the youths participated in this study. Therefore, the study suggests to promote the youths’ participation in agriculture through financial and technical supports from government, NGOs, CSOs, CBOs and the private sector in order to enhance more sustainable livelihoods in Pa-O SAZ.