Multifunctionality does not explain only static state but also a flexible transitional process of a society. It shows how a society going on by adapting something new with existing resources. With a view to understand role of different actors for rural development, a study was conducted at the Sillico village of Garfagnana region of Italy. Our findings reveals that, farmers in the Garfagnanaregion are involving in different kinds of activities. They not only involves in agricultural activities, beside these activities they are more concern about biodiversity conservation by protecting local breed and variety, agro-tourism which have contributed a lot in developing rural area. We have also found that some farmers are highly encouraged and they are trying to shift from weak to strong multifunctional activities or depth of diversification activities so that sustainable rural development exist. Farming community in that village need time to adapt the new agricultural policies. Our study also emphasizes that institutional arrangement can play a significant role to motivate young people to be involved in agricultural activities since these group of people are less interested to agricultural activities.