This study analyzed the determinants and potential impacts of the adoption of sustainable aquaculture (SA) technologies on the welfare of small-scale aquaculture (SSA) households in Myanmar using an endogenous switching regression model. Welfare is measured by fish productivity and fish income per cycle and Household Dietary Diversity Score. Our analysis revealed that distance to the sale-point, membership in farmers’ organizations, awareness of pond maintenance benefits, access to information through private extension services, and location were the main drivers behind adopting SA technologies. Results showed that adopting SA technologies increases welfare outcomes of SSA households; however, the non-adopters stand to benefit the most in terms of an increase in welfare outcomes if they adopt the technologies. Our research findings suggested that policies targeted at raising SSA households’ income and dietary diversity can be realized through interventions to raise farmer’s awareness, adoption, and technical know-how about the SA technologies.