This study evaluates the effectiveness of village fund management in enhancing community-based economic potential in Sriwijaya Village, Aceh Tamiang Regency, based on the perceptions of local residents. The evaluation focuses on three aspects: the overall effectiveness of village fund management, its role in economic development, and the level of community participation. Using a quantitative approach, the findings indicate that village fund management is perceived as effective, with an overall index score of 67.06%. Specifically, the allocation of village funds for economic development achieved an effectiveness score of 74.22%, while community participation in fund management remains moderate, with a score of 49.82%. This study highlights the need for improved community engagement in fund management to optimize its impact on local economic development.