Pancasila Village is a program launched by President Soeharto which aims to improve the welfare of the community from the village level in accordance with the Pancasila soul philosophy. The purpose of this research is to comprehend the Pancasila village project in the beginning of the New Order, the policies implemented in Pancasila village project, and few sectors that became the aim of this project. Focusing in Blitar regency, East Java, this research shows that Pancasila village project aims at improving village economy, enhancing village security by eliminating communist values, increasing village farming, developing infrastructure for education and public facilities, and also other social cultural aspects including birth control, tackling illiteracy, improper behavior, and guidance for people with social problems.