This thesis analyzed the effect of Lecture and Project Methods of Teaching in Rural and Urban Schools on students’ achievements in terms of Social Studies Curriculum Objectives. An Experiment conducted with 8th grade students, of session 2006-2007 studying Social Studies at two Rural and two Urban Government Girls High School, Lahore. Lesson plans of lecture and project methods for the experiment were developed by the researcher, covering five chapters from the Text Book of 8th grade Social Studies. The study was conducted employing Pretest-Posttest Control Group Design, using Matched Subjects of four selected schools of Rural and Urban on Intelligence Test scores and assigned randomly to the lecture and project groups in each selected school. Independent samples t-test was applied on the Intelligence Test scores of students taught through Lecture and Project Methods in Rural and Urban schools to examine significant difference at 0.05 level of significance. The students of the project group were taught by the researcher through Project Method for a period of 14 weeks in Rural and Urban Schools. The students of lecture group were studied from the trained teachers of selected schools through Lecture method. An Achievement Test was used as Pretest and Posttest, consisting 60 Multiple-Choice items measuring the Objectives of Knowledge and Comprehension of Cognitive Domain. Thirty four null hypotheses were tested to analyze data on Achievement Test at 0.05 level of significance. Independent samples t-test was applied on mean gain scores of the lecture and project groups in Rural and Urban Schools on Achievement Test. The results revealed that the project group performed better than lecture group on overall achievement. The students of Urban Schools taught through Project Method were better than the students of Rural Schools taught through project group. The students of project group were more effective as compared to the lecture group in Rural Schools. The results indicated that t-statistics were significant on some Items representing Knowledge and Comprehension. However, the findings of the study suggested that although the Project Method was as effective as the Lecture Method, but the overall students’ achievement of Project Method was better than Lecture Method.