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In a time of environmental degradation and increasing demand for safe food production, traditional fish farming is gaining global attention. Utilizing indigenous agricultural methods founded on traditional knowledge contributes to sustainability by safeguarding the ecosystem and preserving biodiversity. However, it is still less studied whether traditional farming systems based on indigenous knowledge currently in place are improving the socioeconomic conditions of farmers. Hence, this study was conducted with the following objectives: (i) to reveal the present status of traditional fish farming systems, (ii) to define the socioeconomic profile of the farmers, (iii) to identify the problems associated with traditional fish farming, and (iv) to show the inter-relationship between fish farming and socioeconomic development. For achieving these objectives, data were collected from 100 small-scale fish farmers from a rural coastal area of Bangladesh through a well-structured questionnaire, focus group discussion, and cross-check interviews. Our findings showed that most of the homestead ponds were small-sized (44%) and shallow (61%) where a polyculture system was prevalent (91%). The majority of the ponds (77%) were found to be perennial, 60% of which had single ownership. Socioeconomic data revealed that the highest number of farmers (42%) earned 1000.00 to 1500.00 USD annually, and 62% of the respondents took fish farming as their secondary occupation. Among the farmers, 62% had primary education, whereas 7% had no education, and only 26% of the farmers had official training in fish farming, indicating that culture management was mainly based on indigenous knowledge. A total of 55% of the farmers had 5 to 10 family members, and 80% of them lived in joint families. Furthermore, 40% of the farmers owned tin shed houses, whereas the maximum (60%) utilized katcha toilets. However, almost half of the farmers (57%) utilized their own funds for fish farming, and the majority (90%) had access to their own tube well. The study found that the biggest obstacles to fish farming were pressure from large families, a lack of education and training, a lack of quality seed and feed, outbreaks of fish diseases, an inadequate supply of water during the dry season, and a lack of adequate funding. However, Pearson correlation showed that there was a significant positive association between age and experience (r = 0.908, p < 0.01) and age and income (r = 0.326, p < 0.01). Multiple regression analyses also demonstrated that age and experience in fish farming played a significant role in increased annual income. In conclusion, 94% of the respondents claimed that fish farming had improved their socioeconomic situation. Homestead pond fish farming through indigenous knowledge increased household fish consumption with a source of protein and micronutrients, improved dietary diversity, and generated extra household income, which inferred their better sustenance. [ABSTRACT FROM AUTHOR]