Main purpose of the study was to evaluate the challenging role of Non-Formal Basic Education (NFBE) in eliminating the poverty and gender disparities in the rural areas of Punjab. Problems and issues pertaining to the NFBE were also assessed in this study. 750 students, 250 teachers and 50 administrators were taken as samples systematically. An inventory sheet and three questionnaires were used as research tools for data collection. Main findings of the study revealed that NFBE schools are playing a dynamic role in national development by uplifting socio-economic status of masses in the rural areas. NBFE schools were also playing a vital role in discriminating gender disparity by providing equal opportunities of education to male and the female as well. Teachers’ remuneration was insufficient and there was a lack of physical facilities (lack of buildings, electricity and furniture, etc.) in these schools. Syllabus of NBFE was informative, easy, interesting and illustrated with diagrams. Motivational campaigns may be launched through media to mobilize community for maximum participation in the NBFE schools.