The Government of Bangladesh with the help of international development agencies has been trying to develop good governance through effective people’s participation with the aim of realizing effective outcomes from aid-assisted development projects. This research was conducted to explore how theories of people’s participation could be understood and adapted to support effective implementation of development programs through good governance in Bangladesh. Findings from case studies, including the interviews of different stakeholders responsible for ensuring participatory governance, reveal that existing structural, conceptual, and cultural gaps hinder the proper implementation and interpretation of the theory of participatory governance in rural Bangladesh.