In the era of globalization and rapid digital transformation, e-commerce has emerged as a significant driver of business expansion by enabling producers and sellers to access markets beyond geographical boundaries. Micro, Small and Medium Enterprises (MSMEs), which contribute nearly 40 percent to India’s GDP and rank as the second-largest source of employment after agriculture, play a pivotal role in promoting inclusive economic growth. In Karnataka, particularly in Dakshina Kannada district, MSMEs constitute the backbone of rural industrialization and employment generation. This study examines the role of e-commerce in promoting rural MSMEs in Dakshina Kannada district and further analyzes how digital platforms enhance market access, improve price realization, encourage women-led entrepreneurship, and foster financial inclusion. The major findings indicate that e-commerce has significantly expanded market reach, strengthened rural producer networks, and generated new employment opportunities through digital engagement and supply chain integration. The study concludes that e-commerce represents a transformative instrument for rural economic development in Dakshina Kannada. With coordinated support from government agencies, digital platforms, and local institutions, rural MSMEs can leverage digital markets to achieve sustainable growth, enhance competitiveness, and contribute more effectively to regional and state economic development.