The rapid development of oil palm plantations in Indonesia since the end of 1990s has a direct impact on the stages of rural development, especially in the central area of oil palm plantations. Villages whose oil palm has high productivity are growing rapidly. Farmer households have various strategies to increase household income according to the type of work created in the village. The variation of the strategy has implications for the sustainability of farmers' livelihoods, especially after oil palm has passed a planting period of 25 years. This paper aims to analyze village development and the sustainability of the livelihoods of oil palm farmers. Data for analysis are the results of the 2016 study in Musi Banyuasin Regency. Data collection is done by semi-structured interviews, surveys and field observations. The results of the study show that the study location villages developed rapidly after becoming an oil palm development area. Before becoming an oil palm development area, villagers had to work outside the district because there were no sources of livelihood in the local village. But since becoming an oil palm development area, villagers can work in their own villages, especially as land clearing workers. After oil palm has entered its productive age, farmers' incomes are increasing and they are starting to invest in developing the non-oil palm sector. In its development there are four types of farmers' livelihood sources in increasing household income, namely (1) oil palm only, (2) a combination of oil palm non-oil palm agriculture sector, (3) a combination of oil palm and non-oil palm sector and (4) a combination of oil palm, non-oil palm agricultural sector and non-oil palm sector. Among the four types of households, the fourth type of household is the most sustainable.