The purpose of this study was to examine the relationship between Decentralization and economic growth in Rural communities. Mityana district is located in central Uganda and been decentralized in a way that it has a one municipality, four town councils and three divisions and ten sub counties. The objectives were to examine the impact of decentralization on employment in Mityana District, to analyze the effect of decentralization on house hold income in Mityana District, to evaluate the impact of decentralization on security in Mityana District. The study used a cross section design of a sample size 60 respondents from a population of 66. The study population comprised of mainly the departments of the local governments including administration 15, Finance 21, Planning, 02, Education 05, Health 02, Procurement 02, Natural resources 03 Secretaries 10. Primary data which was collected using administered questionnaires to get information from civil servants at all levels from the district, municipality, divisions, and counties and sub counties who cannot directly participate. The findings of the study shown that only 3% = (2) disagreed to the construction of markets as an impact of decentralization on household income and 97% = (58) agreed to it. None disagreed to the provision of employment and 100% = (100) agreed that decentralization impacts household income through the provision of employment. 11.6% = (7) disagreed that decentralization places a high degree of power on responsibility of taxes assigned to local authorities well as 88.3% = (53) agreed to the statement. 6.6% = (4) disagreed to the equal distribution of income in form of development and equalization grants as an impact on household income and 93.3% = (56) agreed to it. It was recommended that the state minister and the minister for local government advise the president that he should decentralize only when the key factors are met.