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More than 350 people from 82 families in Umri village, in the Sariska tiger reserve, moved to a new location.
The number of tigers in Sariska had dwindled to zero before growing to five over the last three years.
Tiger numbers have shrunk alarmingly in India in recent decades. A 2011 census counted about 1,700 tigers in the wild.
A century ago there were estimated to be 100,000 tigers in India.
Compensation \t Umri is the second village in Sariska to be relocated to help secure a proper habitat for tigers to increase their numbers. The villagers moved last week.
There are 11 villages with a population of nearly 2,500 people located in the heart of the tiger reserve which need to be relocated to improve the habitat, Rajasthan's chief conservator of forests, PS Somasekhar, told the BBC.
People living in these villages mostly belong to pastoral tribes.
Mr Somasekhar said efforts were being made to relocate four more villages over the next few years.
"It is a long-drawn process because the villagers have to agree to move out. We can't force them to leave. We can only persuade," he said.
The villagers are compensated with land, cash and livestock worth up to 1 million rupees ($20,000) and relocated to the nearest cultivable plots outside the reserve, Rajasthan's chief wildlife warden AC Chaubey told the BBC.
The number of tigers in the 886-sq-km Sariska reserve dropped to zero from a high of 16 in 2002.
This is fantastic! I'm thrilled that people are being properly compensated and convinced to leave voluntarily, hopefully this will have a big impact on the dwindling tiger population.
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