This study sought to find out the extent to which decentralisation has brought about development in the rural areas in Malawi, specifically focusing on Salima District Council. It sought the views from the local communities themselves and government officials at district level on decentralisation in relation to rural development. Although the study used both qualitative and quantitative approaches, it was predominantly qualitative. As such, it used mixed methods of data collection, which included in-depth interviews, direct observations, questionnaires, focus group discussions (FGDs) and documentary search. Qualitative data was developed into themes and concepts and was subsequently interpreted in a trustworthy manner so as to reflect the true meaning of the data. In other words, explanations were attached to each theme or concept in an attempt to give the meaning of the data. The study found out that decentralisation is effective in terms of rural development such that local people are able to demand for services of their choice from local governments but the main challenge or constraint is availability of financial resources to cater for all the demanded public services. Other major barriers to rural development include capacity deficiencies at district and grassroots level and tensions among key stakeholders competing to maximize their role in local governments. Basing on these findings, and financial resources being the major barrier to rural development, the study recommends that Government should make sure that enough financial resources are released and channelled to district councils to cater for the needs of the communities. The study also recommends that councils should strive to generate more local revenues to cope up with the demand from the communities. And finally, the study recommends that Government should recognize local governments as entities on which is bestowed a huge responsibility of improving socio-economic conditions of the rural areas where 87 percent of the population lives, therefore provision of resources and enabling legislation to enhance rural development should be the primary focus. Of course, these recommendations should be understood within the context of the studied district. Otherwise there is potential for different and expanded recommendations if one replicated the study to cover the entire country.