The overall purpose of this thesis is to examine the role of religious institutions in ruralrncommunity development with a particular reference to Sellasie Monastery of Debre EliasrnWoreda. A cross-sectional study design of qualitative research approach was used emphasizingrnon a phenomological methodology. Hence, in-depth interviews, Focus Group Discussions, andrnfield observation have been used to generate primary data. Accordingly, study participants havernbeen selected from ascetic members, services users and surrounding community residents of thernstudy monastery whose information and/or data were thematically organized and analyzed. Thernstudy found out that, unless supplemented by hard working followed by helping others in need,rneach and every religious based activity among members of the study monastery are meaninglessrnand will be ineffective. In view of that, activities being undertaken in the study monastery havernan influence on livelihoods, social attachments and psycho-social conditions of people in thernstudy area and nearby rural community members to be improved. At the same time, continualrnmisunderstandings are being raised with those activities being carried out in the monastery,rnpredominantly related with issues of (religious) healing practices and bio diversity. The studyrnrevealed that community members of the study monastery are playing their own role in thernreduction of harmful traditional practices (including criminal acts), and for the improvement ofrnhealth, community mobilization, social solidarity at the expense of differences in background, asrnwell as income being generated by residents of both monastic and surrounding communityrnmembers. The study further reveals that lack of doing things through appropriate time planrnfollowed by inability to lead a better socio-conomic life among most rural community residentsrnin the study area are being considered as a result of values and beliefs of EOTC due to largernnumber of saint days within a month while there are a number of works being done in these daysrnthat are equivalent to â€œworkingâ€ days. Creation of ideological and socio-economic polarizationsrnamong EOTC followers themselves, the existence of higher level of EOTC leaders who want tornwreck the monastery down, consideration of the monastic community as a trade center than arnreligious one, and human-made firing of forest in the desert where the monastery is establishedrnare challenges faced by the study monastery