Rural development is a vast sector that encompasses infrastructure creation, sustainable livelihoods, and decentralized governance. Mountain landscapes, with their inherent constraints of remoteness, sensitive ecosystem, and marginality, pose unique challenges to rural development. We undertook an assessment of the evolution of development themes and rural development progress made in the mountain state of Sikkim over the past decade. We found that a rapidly growing national economy has facilitated a 4-fold rise in investment in key rural development subsectors in Sikkim over the past 5 years. This significant enhancement in financial investment, coupled with good governance and innovative policies, has ensured that human development indicators, along with social infrastructure creation, have shown impressive progress. Setting up village cluster-level support offices to strengthen governance, transforming regular programs to mission mode with great political determination by adopting a saturation approach, financing improved earthquake-resistant housing for poor households, and promoting climate change adaption measures to enhance rural water security are some of the innovative approaches that have the potential to be transferred to other mountain areas. We propose a further expansion of capacities and economic opportunities in rural areas by prioritizing the self-employment sector, by expanding the nonfarm rural economy, youth training and placement, and continuing commitment to strengthening democratic institutions and procedures to ensure more rapid and inclusive growth of the rural economy.