The development of rural areas is not possible until the regular employment is provided to the rural people in order to maintain the minimum level of employment and livelihood. In India more than 75% people lives in the rural areas and these areas are underdeveloped. Research and development sector in the country implemented several policies and programmes to overcome with the problems faced by rural people in terms of employment, sustainable livelihood, opportunities, poverty and growth. The Government of India has made efforts in this direction by introducing rural employment scheme under MGNREGA. The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) proposes to augment livelihood security by offering to the extent of one hundred day of guaranteed employment to the rural people of every household in a financial year. The scheme envisages certain objectives to improve rural life employment and livelihood. This scheme focuses on following areas - Conservation of water and it’s harvesting, shielding the poor mass from drought. Plantation and forestation are also on the agenda of MGNREGA. For the works under MGNREGA payment of workers are proposed to be made on piece rate basis in order to ensure that workers are paid for their labor. The present paper attempts to assess the rural employment and sustainable livelihood through MGNREGAs on the livelihood of the excluded population and its performance in creating durable and sustainable community assets in the rural areas.