This paper explores the pivotal role of Self-Help Groups (SHGs) in promoting peacebuilding, economic empowerment, and political participation among women in rural India. SHGs, primarily composed of women from marginalized communities, have evolved beyond their initial function of microfinance into powerful grassroots platforms for social transformation. By fostering financial independence, collective decision-making, and community engagement, SHGs enable women to gain greater agency in both household and village affairs. The study highlights how SHGs contribute to informal conflict resolution by mediating domestic disputes, resolving local disagreements, and preventing the escalation of social tensions—thereby promoting community cohesion and non-violent problem-solving. The involvement of NGOs further strengthens SHG capacities through training, advocacy, and integration with formal governance structures such as Panchayati Raj Institutions. Drawing from empirical insights and secondary literature, the paper underscores the multifaceted impact of SHGs in reducing gender-based violence, enhancing civic engagement, and creating more inclusive and peaceful rural societies. The findings advocate for greater institutional support, policy recognition, and capacity-building to sustain and scale the peacebuilding and empowerment potential of SHGs across India.