This study investigates the obstacles and constraints in the effective implementation of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in rural India. The primary objective is to identify the challenges that hinder the scheme’s efficiency, focusing on delays in wage payments, wage discrepancies, discrimination, and logistical barriers. The study also explores structural constraints such as lack of information, transparency, grievance redressal mechanisms, and institutional monitoring. A quantitative approach was adopted, with data collected from 376 respondents across rural areas, analyzed using the One-Sample Kolmogorov-Smirnov Test to assess the significance of identified obstacles. The findings reveal that significant obstacles include delays in wage payments (74.73%), wages below the minimum wage (63.83%), and discriminatory practices based on gender and caste (79.79% and 74.47%, respectively). Moreover, constraints like lack of information (66.5%) and inadequate grievance redressal (55.9%) were identified as major barriers. The study concludes that these challenges significantly impact the scheme’s implementation and require urgent attention to improve its performance and ensure its intended objectives of providing adequate employment and improving livelihoods in rural India.