The cocoa sub-sector is an important pillar of Ghana’s economic stability and growth prospects; the sub-sector contributes to fiscal stability, infrastructure, and employment. In recent times, diversification has become a common observable feature in the industry. This study uses the conditional mixed process approach to examine the interaction between the diversification status and profitability of cocoa farming simultaneously in a single system. Using data from 401 farmers in the Western and Ashanti regions of Ghana in 2022, the study found that more profitable farmers were more likely to diversify. Conversely, diversified farmers were likely to be more profitable than non-diversified farmers. It also found that the farmer's age, experience, farm area, and location of the farm impacted both the profitability and diversification status of farmers. Thus, it is suggested that policymakers should direct policies and programs to support the creation of alternative farm-based livelihoods for farmers.