A study was undertaken to analyse the profitability of goat farming by collecting data from 150 goat farmers in Ramanathapuram district of Tamil Nadu. The data were analysed through conventional analytical tools like percentages and averages. The flock size of goat was found to be the highest in landless farmers (26.43) and the lowest in small farmers (20.76) with the overall average flock size of 23.85. The total gross income obtained per farm per annum from goat enterprise was the highest in large farmers followed by landless farmers with the overall gross return of about Rs.45,553.93. The net returns with imputed value of family labour per goat was the highest in marginal farmers (Rs.1123.19) and the lowest in small farmers (Rs.540.14) with the overall value of Rs.816.49. However, the net returns without imputed value of family labour was found to be highest in marginal farmers (Rs.1,501.31) followed by landless farmers (Rs.1,353.83) with the overall value of Rs.1,216.76. The results revealed that the goat enterprise was observed to be a profitable income generating avenue in the dry land areas of Tamil Nadu. Hence, any improvement in their production level has direct bearing on the socio-economic status of landless, marginal and small farmers and thereby the overall economic development of the region.