Sustainable rural development in Tripura is crucial for economic stability, environmental conservation, and social equity, given the state's heavy reliance on agriculture, forestry, and rural industries. This study examines the progress made in organic farming, bamboo-based industries, renewable energy adoption, community-led conservation efforts, and the increasing role of self-help groups in economic empowerment. While these initiatives have enhanced rural livelihoods, challenges such as policy implementation gaps, financial constraints, socioeconomic disparities, and climate-related vulnerabilities persist. Using a qualitative research methodology, including field observations and case studies, the study identifies key barriers and opportunities in sustainable rural development. Findings indicate that improved policy execution expanded financial inclusion, and strengthened climate adaptation strategies are necessary to maximise progress. The study recommends better governance coordination, increased investment in rural infrastructure, and enhanced community participation to build a resilient and self-sufficient rural economy in Tripura, serving as a model for sustainable development.