The main purpose of this dissertation is to examine the effects of migration and household capitals on agricultural and energy transitions in the setting of rapidly changing socioeconomic and environmental conditions of Chitwan, Nepal. The environmental aspects of agricultural and energy transitions are also discussed to weave the changes in the livelihoods of rural households into the discourse of sustainable development, especially in the context of underdeveloped countries. The data used for the analysis is the Chitwan Valley Family Study which has been collected since 1996 at the individual and household level with the focuses on agriculture and family. The results from first difference model and multilevel logistic regression model using discrete-time event history approach deliver a couple of important messages for the future plans for local and national development. Most of all, migration plays an important role in the livelihoods of rural households in Chitwan. It might not have a direct impact, but the findings indicate that social and financial remittances from migration interact with how a household utilizes their current capitals under a given context for the future. Particularly, available labor in a household, prior investment in agriculture, exposure to modern life style, and what other people do, all these factors moderate the association between migration and the transitions. The implications of these results on sustainable development for the future of Chitwan and Nepal in the coming years are discussed afterwards.