Decentralization, the process of shifting authority, resources, and decision-making from central governments to local levels, is widely regarded as a strategy to promote local governance, foster community participation, and enhance service delivery tailored to local needs (Faguet, 2014). Information and Communication Technology (ICT) integration has recently emerged as a dominant tool to advance the quality of public services and familiarise them with local contexts (Chambers, 2015; World Bank, 2016; Dhaoui, 2019). Studies show that ICT can significantly increase the efficiency and quality of services, transforming governance structures (Dhaoui, 2019; UNDP, 2016). However, while ICT offers immense potential, concerns about the digital divide and its impact on social inequalities remain critical (Niehaves & Plattfaut, 2010; DiMaggio et al., 2004; Hsieh et al., 2011; Holgersson & Söderström, 2019; Dewan et al., 2010). Bangladesh’s Union Digital Centre (UDC) is a ground-breaking example of ICT-driven service delivery, aiming to provide universal access to government services, particularly in rural areas (ICT Division, 2019). By bridging the gap between urban and rural communities, UDCs address the disparities in service availability and accessibility. This chapter examines the transformative role of ICT in enhancing rural service delivery and governance through the UDC initiative. It also sheds light on the challenges of implementing these digital services. Based on the literature review, this chapter provides insights into the role of ICT in decentralization in Bangladesh. The analysis begins with a global perspective on ICT’s influence on decentralization and governance, followed by a focused discussion on the UDC initiative. The chapter concludes by exploring the future of ICT in decentralized governance in Bangladesh, offering practical recommendations for policymakers, practitioners, and scholars engaged in ICT-driven governance reforms in developing countries.