This study was conducted on the impact of Community and Social Development Project (CSDP) on rural communities in southern Taraba State, Nigeria. The specific objectives of the study were to; describe the socio-economic characteristics of the rural dwellers, determine the impact of CSDP on rural development and identify problems militating against CSDP project in the study area. Data were collected from 150 respondents randomly selected using structural questionnaire and they were analyzed using frequency, percentage and T – test. The analysis on the socio-economic characteristics shows that majorities 73.3% of the respondents were below the age of 50years.This implies that youths were more than old people in the study area, majority 60% of the respondents were male than female, most 53.3% of the respondents were married than single, majority 80% has household size more than 5 persons. With this population they involved in agriculture production in order to sustain their selves and family, majority 80% of respondents attended one form of education or the others, most 60% of the respondents occupation were farmers, most of the respondents had farm size less than 5 hectare which means they are small scale farmers or peasant farmers and majority 73.3% of respondents earned less than N40, 000 as their monthly income in the study area. The result on impact of CSDP on rural development shows that Community and Social Development Project (CSDP) had impacted positively on rural development and their living standard had improved. This also implies that through CSDP the rural communities have access to social infrastructure such as school facilities, health facilities, road network, water supply, market facilities etc. This was based on t – calculated value was (7.54) while the tabulated t – value was (3.73). Since the calculated t – value was greater than tabulated t – value we rejected the null hypothesis (Ho) which stated that CSDP has no significant impact on rural development and accepted the Alternative (Ha) hypothesis which stated that CSDP has significant impact on rural development. Recommendations were made based on the findings of this study include; the government should bring lasting solutions to the communal crises in the study Area also the people should accept dialogue and forgive one another for peace to strive. Both the government and communities should pay their counterpart funds on time to enable the commencement of the project in the study area.