Livelihood Improvement Program (LIP) is one of the important components of LGCDP aiming for the economic empowerment of DAG community of the CAC in VDCs and municipality ward of 10 districts of this region. For the diversifying the source of income and employment creation Government of Nepal (GoN) has been providing Rs One lakh LIP Grant to each CAC since 2069. The data were collected from districts and municipals though DGEs, UGEs and ICTVs. Data compiled and analyzed using simple excel sheet and derived the findings as report form. As of end of FY 2071-72, there are 643 CAC of 655 in VDC and 207 CAC of 212 in municipality. There were 8, 280 members have benefited, among those 82.3% women, 17.7% men, 51.7 % dalit, 21.2 % janjati and 27.1% others caste members. This data was recorded from 688 LIP grant mobilized CACs. Women participation was more in municipalities than VDC. Dalit participation was more in VDC but higher Janjati and other caste participation in municipalities' wards. There were 92.9% grant mobilized, 6.7% grant in bank and 0.5% in cash form for mobilization. Grant mobilization was found more in case of VDC than municipality. On an average individual credit to each member found Rs 9,561 to carry out a business. There were 67.19% livestock based, 14.22% of agriculture based, 2.13% of forest based businesses and 16.47% mixed type small business recorded. Livestock businesses were high in VDC and small businesses were high in municipalities. LGCDP contribution was 77.08 %, from CAC members 23.3 % and others 0.98% in business. This LIP grant implementation has much impacted to vulnerable and disadvantaged households of the CAC for diversifying income sources, increment of employment, ease of daily lives and livelihoods. Program need to make an effort to cope with few issues and challenges for better utilization of grant, economic changes of peoples from the business, linkages with various stakeholders and institutionalization for sustainability of CAC.