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Decentralization is very important dimension of the modern political system because it applies the core of democracy through local government system (LGS). Every country struggles for social development that includes the standard life of the citizens which is only possible through better delivery system of social services by an efficient local government system. The major concern of the current research is to measure the relationship between “Decentralization” and “Social Development”. The current study is quantitative and descriptive in nature which is based on explanatory research design. The data are gathered through primary and secondary sources. The sample size of primary strand of study consists of 1000 respondents which were selected from the six sampled universities of the Punjab (Pakistan). The questionnaire was employed by the researchers to collect the primary data that are analyzed later by statistical package for social sciences (SPSS). The results of the study found a strong relationship between decentralization and social development. The value of R-Square is .468 that indicates all the included subindicators of independent variable have strong and positive relationship with dependent variable.