The paper examines the impact of sectoral transformation in agriculture on sustainable development in North and Central Asia. It discusses trends and developments of agriculture and structural transformation, as well as its effects on sustainable development in the subregion. Since the breakdown of Soviet-Union, the subregion underwent economic and political transformation and recorded positive growth after eight years. In the course of transition, all countries in the subregion experienced constantly declining shares of agriculture in gross domestic product. However, the agriculture sector still employs a large share of the population, especially in rural areas. Potential gains from intrasectoral transformation in agriculture should not be underestimated. Increasing sectoral productivity, and hence profitability, bears the prospective to lift millions of people out of poverty while optimizing resource efficiency.