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Rural development is a multi-dimensional concept, which involves all kinds of development in rural areas through collective government efforts. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is a revolutionary step for India's poor. The study was assessing the impact of MGNREGA on reduction in poverty, out-migration, purchasing power parity of respondents, employment income of beneficiaries rural household and to identify the major constraints ineffective implementation. It covers the factors responsible for the emergence of MGNREGA in 2005, the concept of poverty, a review of various wage employment programs that were implemented since Independence and identifies the challenges in the implementation of those programs and examines poverty status and employment in India and Rajasthan. Along with rural employment theories, many articles and research studies dealing with different aspects of MGNREGA have been reviewed and presented. The profile of the Rajasthan and sample data of the Jodhpur district were analyzed.