This chapter examines impacts of education in rural Bhutan. There is a perception in Bhutanese society that modern school education has alienated the younger generation from rural farming life, and that this is one of the main causes of increasing fallow farmland and out-migration to urban areas. The chapter re-examines the impact of modern formal schooling on rural out-migration. While the view that modern school education alienates students from rurality may reflect a degree of reality, the chapter calls for a careful examination of combined factors. The chapter suggests that modern formal schooling, through introducing new perspectives on the life and the world, is one of the main driving forces of social changes in Bhutan. Furthermore, I argue its combination with other factors, such as the recruitment system for white-collar jobs, has to be kept within the scope of examination.