ABSTRACT This report is a result of an academic research entitled “The Contribution of Decentralization and Community Development Project (DCDP) on poverty reduction in Nyagatare District/ Rwanda (2005- 2010)”. The main purpose of this study was to analyze how DCDP project led to poverty reduction in Nyagatare District/Rwanda. The study was guided by three specific objectives: (i) to establish the activities done by DCDP in poverty reduction; ii) to assess the obstacles of DCDP for achieving its objectives; (iii) to analyze the role of DCDP and poverty reduction. The population was comprised of 515 people selected in Nyagatare District; a sample seize was 225 respondents, using simple random sampling method. Questionnaires and interviews were used in collecting both primary and secondary data. The collected data was analyzed using both qualitative and quantitative methods. The study was in form of a descriptive design, to describe quantitatively how the project has contributed in poverty reduction in Nyagatare District. The findings revealed that DCDP project has greatly contributed in capacity building; DCDP has contributed in construction of office sectors, school and income generating. Somewhere else, respondents confirmed DCDP project has contributed in hygiene and sanitation while DCDP project has participated in construction of health centers. The study also noticed people walked more than 20 km to reach source water while nowadays the surveyed said they walk less than 5 km to reach water. Therefore, these precisions confirm that DCDP project has contributed on poverty reduction in Nyagatare district in the Eastern Province of Rwanda. The study concluded that DCDP project has greatly role in poverty reduction, spreading quick development, good governance, education and health.