Community development-oriented service learning (CDOSL) is an approach to service learning that integrates service with the school curriculum and the local community development agenda. This study examined the positive impacts that CDOSL has on rural students and communities. Surveys and case study research were conducted with 145 students, teachers, program coordinators, school administrators, and community leaders in 11 rural Midwest communities. Results indicate that CDOSL was a rare but innovative approach to service learning. Student social capital development was significantly greater for CDOSL projects than for non-CDOSL projects; students developed significantly more favorable relations with adult civic leaders and community organizations when their service-learning experiences pertained to high priority community issues. Student human capital development was not significantly greater for CDOSL projects than for non-CDOSL projects in terms of levels of civic knowledge, skills, and values. Positive community impacts of service learning were rated significantly higher for CDOSL projects than for non-CDOSL projects. Positive impacts included improved perceptions of youth and adults toward each other, closer relationships between schools and government, lower project costs, increased community demand for student involvement, and more timely accomplishment of community development goals. Recommendations are offered to schools and communities and to state and national programs. Appendices present data tables; survey questionnaires; community profiles; and an annotated list of 29 related resources, most with Web site addresses. (Contains 73 references.) (TD)