Rural development is crucial for economic stability, food security, and environmental sustainability. Precision farming and smart agriculture have emerged as transformative solutions, integrating advanced technologies to enhance agricultural productivity while addressing rural challenges. Despite agriculture being a primary livelihood source, conventional farming methods face inefficiencies, resource wastage, and climate vulnerabilities. The adoption of precision farming leveraging IoT, AI, and big data offers solutions by optimizing inputs, improving yield predictions, and ensuring sustainable resource use. Smart agriculture, with tools such as drones, remote sensing, and automation, further strengthens rural economies by increasing efficiency and reducing costs. This study evaluates the impact of precision farming on rural development, emphasizing economic and environmental benefits while identifying key challenges. Using secondary data sources and analytical tools, the research highlights innovative strategies and policy interventions required for widespread adoption. Government support, digital literacy programs, and public-private partnerships are essential to drive technology-driven rural transformation. Integrating climate-smart agriculture and expanding market access through digital platforms can further sustain rural economies. The findings suggest that precision farming and smart agriculture can revolutionize traditional farming, ensuring long-term rural prosperity while addressing global agricultural challenges.