This research was carried out to examine the impact of community development projects (CDP) on rural communities in Southern part of Nasarawa State, Nigeria. The specific objectives of the study were to; determine the impact of CDP on rural development, establish the significant relationship between CDP and the wellbeing of the rural dweller and identify problems militating against CDP project in the study area. Descriptive survey research design was adopted for the study. Both primary and secondary sources of data were utilized. The population of the study was 21,000 target groups. Using the proportional systematic random sampling technique, 5% of the population (1,050) from 5 project communities were selected and 1022 respondents participated in the study. Data were collected from the respondents using structured questionnaire and analyzed using frequency, percentage, while chi-square statistic tool was employed to test the hypotheses at 95% level of significance. After data presentation and analysis, the study found out that, Community Development Projects has a significant positive impact on rural communities in the study area. It was also revealed that communal crises and delay in payment of contribution funds by individual community members for project execution were the major problems militating against community development project (CDP) executed in the Study area. Based on these outcomes, the study recommended that the CDP management in the rural areas should expand its’ community development projects to include the establishment of cottage industries and handicraft centres for training of skills in order to sustain the wealth creation mechanism. Lastly, Nasarawa State Government should bring lasting solutions to the communal crises in the study area as development can only strive in a peaceful atmosphere.