Rural tourism includes a range of activities, services and amenities provided by farmers and rural people to attract tourists to their area in order to generate extra income for their business. This type of tourism enhances the revenue of government of a country as well as earnings of the rural community. The Assam government at present introduced four rural tourism projects at four resourceful villages of Assam. The present study makes an attempt to evaluate the performance of Durgapur Rural Tourism Project with a view to examine the potentialities and challenges of the project. The study observed that although the village has resourceful commodities but the site has been suffering since its inception to attract the tourist affecting into sustainability of the project and strategy of the government. To ensure the increase in the revenue of the project as well as local community, it is necessary to moderate the site with resourceful rural activities that can attract the tourist easily and also adopt steps for monitoring the site regularly by appointing some agency. The study also recommended that advertising and promotional campaign must be introduced to ensure the rise of number of tourist.