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Abstract The granting of authority to manage and explore the potential sources of the region, and the authority to manage regional finances in an orderly, efficient and effective manner that becomes the main basis in local financial management, based on Law 23 of 2014, on Regional government and Law 33 Year 2004, on the Central and Regional Financial Balance. In the reform era, the village development policy, both on the development of village institutions, the development of village infrastructure and village environment and the empowerment of rural communities, the government made a policy by providing financial assistance and program assistance in each village in Indonesia, annually allocated to the State Budget of Revenue and Expenditure (APBN), in the form of Village Fund Allocation. The Village Fund Allocation is a part of the village’s financial aid, taken from the Central and Regional Budgets Fund, where 10% of the General Allocation Fund and the Special Allocation Fund received by the Regency/ City are allocated at 10% for the Village Fund Allocation Fund or better known with ADD. The Village Fund Allocation is intended for villages with villages to make a plan of needs that are intended for: 1. For the cost of rural development; 2. For community empowerment 3. To strengthen public services in the village; 4. To strengthen village participation and democracy; 5. For village officials allowances; 6. For operational village administration; 7. Do not be used for political activities or unlawful activities. So the authors are interested in conducting studies by creating a text entitled “Benefits of Allocation of Village Funds for Development and Villagers“ This paper is reviewed from the literature review, with the authors taking data from reading books and documents related to the Village Fund Allocation and the current legislation, with the intent and purpose of the authors want to know more about the benefits of funds allocation of village funds for development and village communities. Keywords: benefits. ADD, development,villagers.