Abstract: Acacia senegal (locally: Hashab tree) is one of the most important tree species in Sudan as it considers the main Gum Arabic producing tree. The objective of this study is to investigate the socio-economic aspects of gum Arabic production and to assess contribution of gum Arabic to sustainable livelihood of local people in Dalanj Locality, South Kordofan State-Sudan. Social survey was carried out by using structured questionnaire for 80 respondents (gum producers) on random sample basis in eight villages, 10 respondents from each village. Issues pertaining to socio-economic factors affecting gum Arabic production and contribution of gum Arabic to sustainable livelihood of local people, in Dalanj Locality, were assessed. Results of the study revealed that expansion of agriculture lands at the expense of hashab trees, fires and illegal felling are the most important factors constraining gum production in the area. The results also indicated that agriculture is the main source of income and gum Arabic is a supplementary source of income. The importance of gum Arabic becomes apparent during (off farm season) the period between crops harvest and the preparation of the next agricultural season. Establishment of producers’ associations and provision of loans to producers are highly recommended to ensure sustainability of gum production.