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Livelihood loss and lower income because of peatland mismanagement are crucial issues that must be resolved in peatland areas. Although many studies have assessed farmers’ livelihoods and income enhancement, progress in addressing these problems remains inadequate. To address this issue, this study aimed to analyze various existing alternative livelihoods in the peatland community in Ogan Komering Ilir District, South Sumatra Province, Indonesia, and analyze scenarios for creating livelihoods and increasing people’s incomes through changes in peat ecosystem management and peatland restoration programs. This study used a survey method conducted in South Sumatra Province’s OKI District, one of the four priority peat-restoration districts in the province. We used three sampling stages, while descriptive, tabulated, and mathematical methods were used for analysis. We analyzed the feasibility of livelihoods that used benefit-cost analysis. The results showed that Sonor cultivation of paddies and catching fish in Rawang (swamp) were the livelihoods of farmers in peatlands. The community has also been processing peatland commodities into other products, such as Purun woven, and Gula Puan (buffalo milk processing). Several alternative livelihood scenarios that are financially profitable and can be developed include salted and smoked fish, Purun woven handicrafts, paludiculture, and agrosilvofishery, which can provide farmers with short-, medium-, and long-term income opportunities. This study can contribute to policymaking by fully considering the role of peat resources in rural livelihoods. Full article