Development is the process that includes structural, behavioral, organizational, socio-economic improvements and reduction of socio-economic inequality. Rural development is the action implemented to improve poor economic conditions, inadequate infrastructure such as limited income system, employment fields, dysfunctional financial system, extreme poverty, malnutrition, poor access to education, healthcare, political conditions and other socio-economic system of rural area. The implementations of rural development programs have positive and negative impacts. A rural kebele center development has been implemented to develop rural households in the study area, but its impact on households has not been scientifically determined. The overall aim of this study was to investigate the socio-economic impact of this program on rural households of Guangua district. A mixed method design was used to conduct this research. The reason behind this is its pluralistic perspective helps to enrich results by taking the strengths and controlling weaknesses of each individual research methods. In-depth interview, key informant interview, focus group discussion, field observation, and audiovisual technique were used to collect primary qualitative data, and survey, face-to-face and document survey techniques were used to collect primary quantitative data. The results of the study showed that the implementation of rural kebele center development program positively contribute to enhancement of education, justice, health, and other social issues and economic issues such as economic activity, income generating source, employment fields and the working conditions of the study area. Negatively, the implementation of rural kebele center development program have overshadowed some aspects of education, justice, health, religion and economic activities, income source, employment fields and working conditions. RKCDPI has been challenged by poor economy of households, unaffordable financial system and inadequate political system. Keywords: Rural kebele center, Social, Economic, Positive and Negative