This study is an attempt to investigate the changing role of women in the rural sector in recent decades while evaluating the structural transformation of the Punjab economy. The case of Punjab is vital because it is the classic example of falling from the highest per capita income state to a crisis-ridden state. On one hand, the implementation of the Green Revolution in the late 1960s drastically changed the rural economy and led to economic growth. On the other hand, it also created significant gender disparities, particularly in rural areas. The state has held the top rank in the case of agricultural growth during the early decades of the Green Revolution. However, from the nineties onwards, the economy of the state in general and the agrarian sector in particular have been in a dismal situation. Against the backdrop of this shift from a high-growth economy to a low-performing state, along with a declining agriculture sector, the study found the past trends of low work participation of females in economic activities. Various theoretical approaches that deal with women’s socio-economic conditions during the transition phase of an economy advocate for the larger participation of women in non-farm activities. Despite the deceleration in the growth of the farm sector for the last three decades, a recent jump in female work participation (both LFPR and WPR) along with the increased share of agricultural employment seems paradoxical. Further, socio-economic indicators of rural women of Punjab in terms of education and health are also unsatisfactory as compared to urban females. It makes a strong case for a structural transition from agriculture to vibrant non-agriculture sectors that align well with female active participation in economic activities. In order to guarantee that women may fairly profit from the change in the rural economy, the study emphasizes the significance of gender-sensitive research, policies and actions.