Agriculture is an important sector in the Armenian economy, with a contribution of 20 percent of the GDP, 35 percent of the employment, about a third of the total export in 2015. Small-scale, semi-subsistence farms predominate the sector, with 80 percent of the farms having less than 2 ha of land. Only 1 percent of farms have more than 10 ha, and these farms account for 15 percent of agricultural land use. Irrigated land accounts for 30 and 45 percent of the total agricultural land and value of crop production, respectively. Agriculture has recorded strong growth during 2004-2015. It grew by 83 percent and accounted for a quarter of the 70 percent growth in the overall economy during this period. This growth has been driven largely by increased productivity of semi-subsistence farms through increased fertilizer and improved seed use. The growth has largely been inclusive of small scale farmers. Agricultural export more than quadrupled between 2004 and 2015. Yet, most of these exports (70 percent of the total agricultural export) come from the export of beverages and tobacco products, which do not draw significantly on Armenia’s agricultural resource base. Agriculture has experienced improvements in access to credit, Foreign Direct Investment (FDI), and Government budget support during this period. Sector access to capital improved, both through commercial bank lending for agriculture and FDI in primary production and agro-processing. The agriculture budget increased modestly (4 percent) during 2012-2015. Yet, the budget support is not well targeted with a third of the total budget expenditure allocated to subsidies at the expense of essential public services that account for less than 2 percent of the budget support. The overall agricultural employment has declined by 18 percent while women employment increased by just 1 percent (men employment fell by 33 percent) between 2004 and 2015. Higher agricultural productivity and prices, as well as the fall in labor supply, contributed to higher agricultural wages, which increased by 126 percent from 2004-2015. Yet, agricultural wages remained at 65-70 percent of non-agricultural wages. The sector has been largely resilient against frequent shocks during the last decade. Factors that contributed to the resilience of the sector to shocks include its semi-subsistence nature, diverse farming systems, adoption of drought tolerant crops, and strong and stable base of public transfer systems. This study provides four hypotheses that can be used as bases to review the contribution of the agriculture sector to sustainable and inclusive growth in Armenia. These are: i) a new model, which focuses on medium-scale farms and commercialized farming, for agriculture sector growth; ii) a vibrant private sector driven by medium-scale farms and agri-business enterprises; iii) investment in knowledge transfer for farmers and agri-business and improved education and training for rural people; and iv) resilience in a modernized agriculture sector.