The paper starts with a review of the concept of diversification, encompassing its associated dimensions, typology and influencing factors. Linkages between diversification and poverty are also briefly outlined in this section. The case of diversification in fishing communities is made in the third part of the paper, exploring misconceptions in greater depth, providing case study evidence to dispel them and highlighting consequences of inappropriately designed and targeted policies on fisherfolks. Implications of diversification in relation to the state of fisheries resources and their management are explored in the fourth and last part of the paper.