The focus toward specialized double cropping in the recent past and the resultant stagnant farm productivity, natural resource degradation, improper by-product recycling, and declining resource use efficiency warranted renewed efforts toward dairy-based integrated farming systems (IFS) approach. The small holder dairy-based integrated farming system (IFS) under present study resulted in production of 323% more wheat equivalent yield (27358 kg ha⁻¹) and diverse provisioning services (grains, fruits, straw, green fodder, milk) as compared to groundnut–wheat double cropping system. The dairy-based IFS generated 82.7% more net return (2501 US$ ha⁻¹year⁻¹) with 1.52 benefit cost ratio, resulted in uniform distribution of income throughout the year (US$ 529 to 909 every month) and generated 251% more employment (418 man-days ha⁻¹year⁻¹) than double cropping. It provided regulating services in the form of improved soil fertility (19% more soil organic carbon), enhanced saturated infiltration capacity, higher carbon sequestration (552%) and was more dependent on indirect and renewable energy sources. The dairy-based IFS recorded more soil biodiversity (earthworm, fungal, and bacterial count) and better nutrient (100 Kg N, 45 Kg P, and 80 Kg K ha⁻¹ year⁻¹), and by-product recycling (20.4 tonnes farm yard manure and 1.98 tonnes farm-compost) vis-a-vis double cropping system (supporting services) besides providing many cultural services. The study concluded that systems transformation through greater crops-livestock integration provides number of provisioning, regulating, supporting, and cultural services, and leads to sustainable food systems.