This research aims to analyse and assess social and economic impacts of rural electrification (REL) in the lives of the women in order to justify the high investment and priority given to this sector by the Royal Government of Bhutan and to see if it is helping in achieving the relevant aspects of MDG 3. In particular this research focuses on REL''s impact on the daily activities and drudgery, health, education, income, empowerment, migration to urban areas and security of women. The research reveals that electrification is playing an important role in reducing drudgery in rural women''s lives. It also has some positive impact on health, education and employment.However, it does not appear significant in empowering women and in bringing gender equality in rural areas. Women still appear to be inferior in terms of financial independence and in their share of household work. The positive impacts of REL found by this study are not enough to fully justify the huge investments in REL programs. The benefits from it could be enhanced by encouraging participation of the beneficiaries and by introducing gender focussed supplementary programs.