The purpose of this study is to investigate the role of border markets in improving the situation of residents of border areas. In the present study, the statistical population of the study is households in areas covered by border markets and outside the area (within 20 km of the border markets) of border markets, which were selected based on the imputed random sampling method. Accordingly, 227 households were selected from the Milak border markets area. Also, in order to analyze the effects of border markets on the welfare and livelihood of residents of border areas, the difference-in-difference regression approach was used. The output results of the difference-in-difference regression showed that the coefficient of the variable DiD is the same as the parameter, i.e. the effect of the Milak border market on the welfare and livelihood of the residents of the market area. The coefficient value is 2.28 and the sign of the obtained coefficient is positive. This means that the Milak Border Market has had a positive impact on the well-being and livelihoods of residents of the border market area by 2.28%. Also, according to the results obtained, it was found that in total, the areas covered by border markets have a welfare index of 0.34, and the areas outside the border markets area have a welfare index of 0.32. Therefore, the areas covered by border markets have a slightly better overall welfare level than the areas outside the border markets area.