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Diversification of food products in the global era such as today requires the right strategy so that products can be accepted by consumers.This study aims to (1) analyze the potential of the development of diversification of bagea, kapurung and dange products in home industries in Wara District of Palopo City, and (2) Analyze the strategy used to develop the diversification of bagea, kapurung and dange product in home industries in Wara District of Palopo City.The research was conducted in Wara District of Palopo City, South Sulawesi Province using purposive informants. The data were analysed using descriptive qualitative analysis.The results of the research indicate that the potential of the development of diversification of bagea, kapurung and dange products in home industries in Wara District of Palopo City as a local food products made from sago are very dependent on the condition of availability of raw materials, equipment resources, human resources, and production processes. The strategies used to develop the diversification of bagea, kapurung, and dange products in home industries in Wara District of Palopo City are (1) to increase the product quality, to innovate the product, to maintain the product characteristics, and to design interesting product for bagea industry (2) to increase the technology of product manufacture, to promote the product as training for kapurung and dange industries.