The Sustainable Livelihood Program (SLP) of the Department of Social Welfare and Development (DSWD) is a key initiative aimed at reducing poverty through inclusive, eco-friendly, and community-driven economic empowerment. This study assessed the implementation of the SLP in Paete, Laguna—a culturally rich but economically vulnerable municipality—focusing on its effectiveness, efficiency, and the challenges faced by beneficiaries. Paetes residents, primarily dependent on fishing, woodcraft, and tourism, face limited market access, environmental risks, and socio-economic constraints. Using a descriptive-correlational research design, the study surveyed 344 purposively selected SLP beneficiaries active from 2020 to 2024 through a validated questionnaire. Data analysis employed frequency counts, percentages, means, standard deviation, and Pearson correlation to determine the relationship between program performance indicators. Findings showed that SLP implementation was generally effective during its early phases, including social preparation and resource mobilization. However, ongoing issues such as lack of post-project support, skills training, and access to capital and markets hindered long-term impact. A significant correlation between program effectiveness and efficiency highlighted the need for better strategic planning and participatory approaches. Weak monitoring systems and limited coordination between agencies were also identified as barriers to sustained success. The study recommends localized policy development, improved training and evaluation mechanisms, enhanced collaboration between DSWD and local government units, and stronger post-implementation support. These insights may inform future program adjustments and policy reforms to optimize livelihood outcomes, promote resilience, and sustain cultural heritage while addressing poverty in rural communities like Paete.