The sustainability of local aquaculture supply chains is strongly influenced by livelihood security and dynamics of the stakeholders. This study investigates these aspects, along with different stakeholder’s livelihood vulnerability levels, in the live fish supply chain of Tripura, India, during 2023–2024. Primary stakeholders comprising fish farmers (producers), wholesalers cum commission agents, and retailers, while secondary stakeholders comprised fish feed suppliers, transporters, labourer’s, fertilizer dealers, money lenders and the fisheries department of the Government of Tripura. Among these, money lenders posed challenges due to their high-interest loans, adversely impacting the profitability of small and marginal fish farmers. The study highlighted the significant role of wholesalers and government agencies in influencing the supply chain. Using the Household Livelihood Security Index (HLSI), the analysis revealed 60.0% achieved high health security while food, education and social security found to be at moderate levels. However, majority of the stakeholders experienced low economic, institutional and infrastructural security. The Household Livelihood Vulnerability Index (HLVI) primary stakeholders were 0.317, with sensitivity and limited adaptive capacity as dominant contributors to vulnerability. Secondary stakeholders exhibited slightly lower vulnerability (HLVI: 0.270), though specific households faced moderate risks. Factors like limited access to health, food, and water resources, coupled with constrained socio-economic profiles and weak networks, heightened vulnerability. These findings emphasized the need for targeted interventions aimed at strengthening institutional support, improving infrastructure and extending financial and technical assistance to smallholders. The study concludes by underscoring the importance of stakeholder sensitive policies to promote sustainable aquaculture, build resilience and support equitable development across the live fish supply chain.