This chapter discusses the implemantation of participatory development in the pesantren Maslakul Huda of Kajen Pati Central Java. It argues that participatory development in the pesantren Maslakul Huda has led to the creation of geniune participation in which lokal people are able to identify ther own problems and potentials and to create alternative solutions. The role of the kyai in this pesantren is limited to giving Islamic justification to acceptance of participatory development and program implementation is in the hands of senior santris and village facilitatoters. The use of participatory action research and the creation of the self-help group as a people s forum enable them to express their own perspective on their problems without the kyai s interference. However in the pesantren utilises participatory development to enhance its economic position among the local people.