Since the end of the 1980s, international development agencies and democratic donor countries have demanded people’s participation in aid assisted development works as a way to ensure good governance in developing countries. To comply with this, the Government of Bangladesh is trying to develop participatory local government to support overall good governance. Today people in rural Bangladesh are participating in implementations of local development programs. A research study thus attempted to explore the level of people’s participation in rural development programs in Bangladesh and find out its impact on good governance components such as accountability, transparency and predictability. The results have revealed that people’s participation in rural Bangladesh is not effective enough to establish good governance in the society.