Targeted technical interventions for diverse farming systems is a challenge in emerging countries like India. Typologies may be used as tools for dealing with farming system heterogeneity. This is achieved by classifying farms into groups that have common characteristics i.e. farm types which can support the implementation of more tailored approach to agricultural development. This article explored patterns of farming system diversity through classification of 72 farm households in two districts (Warangal and Medak) in Telangana region of Peninsular India. Based on survey data collected during 2013 and 2017, the typology constructed using multivariate statistical techniques, such as Principal Component Analysis (PCA) and cluster analysis (CA). Results proposed two major farm types, classified on the basis of household, land use, livestock and income variables explaining the structural and functional difference between farm types. Type 1 was characterized by marginal farm households with cereals especially rice and livestock based farming system and ample off farm/nonfarm activities. Where as in type 2 was characterized by smaller household with maize and cash based cropping systems and farm income provided mostly by cash and maize crop sales and less livestock activity. Cereal intensity was high in type 1 than type 2 as type1 households major concern is food crop production oriented. In animal component the main difference was buffalo population was high in type1 than type2. Degree of diversification was high in type2 as maize and cash crops were major base crops. Type 1 marginal holdings were in survival strategy and small holdings of type2 were in developing mode strategy. Marginal holders were coping the income with off farm/nonfarm activities for income improvement which was higher in type1 where as in type2 were adopting towards diversification strategy for income gain, so off farm activity was less. This study indicates that, typology demarcation facilitates in identification of type-specific farm household prospects and limitations for suitable agricultural development policy. It is required for further studies to develop research project.