This study assesses the implementation of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in Jodhpur, focusing on its impact on employment generation, income security, and rural asset creation. MGNREGA has proven instrumental in providing livelihood opportunities, reducing seasonal migration, and enhancing infrastructure in Jodhpur, a region with limited traditional employment options. The analysis highlights MGNREGA’s positive contributions, particularly in creating income stability for marginalized communities and fostering rural development. However, the study identifies several challenges that limit the program’s full potential, including delays in wage payments, inadequate awareness among beneficiaries, and administrative resource constraints. Gender disparities also persist, as women face unequal access to work and lack of facilities at worksites. These challenges, if left unaddressed, may compromise the sustainability and efficacy of MGNREGA in alleviating rural poverty and promoting economic resilience. To overcome these limitations, the study recommends measures such as improving digital payment systems, strengthening monitoring frameworks, expanding awareness campaigns, and introducing gender-sensitive policies. By addressing these issues, MGNREGA can continue to play a vital role in rural poverty alleviation and sustainable development. This research provides insights that can inform policy improvements for more effective program implementation.