This study explores the role of microfinance in promoting women empowerment with specific reference to Madhya Pradesh. Using both primary and secondary data, the research analyzes the impact of microfinance on various empowerment dimensions such as economic independence, social status, decision-making, and mobility. Statistical analysis reveals significant positive effects of microfinance on economic and social empowerment, as well as on women's mobility. However, the impact on decision-making power was found to be statistically insignificant. The findings suggest that while microfinance is a powerful tool for empowering women, supportive social and educational interventions are also necessary for holistic development.