Local government is considered as an inextricable part of the government system that provides rural people with services. In developing countries like Bangladesh where poverty still dominates, local government plays a vital role in improving the living conditions of the rural poor. Indeed, the role of local government may be more important in developing countries. Local government can be considered as the most significant channel through which government can reach the doorsteps of the rural poor. This study aims to contribute to the literature by looking at some cases of a developing country. In Bangladesh, local government lacks the capacity to provide the rural poor with effective services. This study looked at the case of the Union Parishads (UPs) in Bangladesh as an example of local governments in developing countries to examine the prevailing problems and future prospects in delivering public services to the rural poor and encouraging public participation. In doing so, three UPs (Kalirbazar UP, Moynamoti UP and Bijoypur UP) were chosen as the study area. Utilizing a mixed-method approach, this study found that local residents (villagers) have increasing need for the delivery of public services by their UP. A lack of service delivery coordination, lack of funds, and limited authority are identified as the major challenges. To address these challenges and other issues, we offer some policy recommendations. A transparent selection process should be implemented for the beneficiaries of public service and assistance programs. A consensus among the committee members should be in place and follow-up feedback provided by the local public. The UP should have adequate resources to maintain the proper level of service delivery. The UP should establish some revenue generation programs, related to the development, beyond the current tax collection. The UP should have the proper level of autonomy to provide services without undue pressure from political elites. Having more public participation from the local population as well as the general satisfaction of the public would help to accomplish this.