Rural Development Projects (RDPs) are mostly multi-components designed to affect development, reduce poverty and improve the well-being of the rural people. They imply provision and delivery of different inputs and services with the anticipation of having the expected results after a period of time. As these results may not be achieved or these inputs and services do not generate the expected benefits or there may be some errors in the project design; RDPs require a good deal of testing and adjustment during their implementation period. Monitoring and Evaluation is the system which usually deal with the above mentioned information for these projects and different programmers. In the last few years M&E received a lot of attention with the increasing practice in a large number of developing counties. Quite a lot of debatable and controversial question about the best use of the system are still under consideration. Although there is a general agreement on the sequential actions of the main objectives of the rural development projects, i.e. inputs, outputs, effects, and impact, there is still a lot of confusion concerning these objective and functions of monitoring and evaluation.