This study used Malaysian case as the empirical platform to articulate the issues of development at the local level mainly Desa Lestari (Sustainable Village) program of KPLB. The data were obtained mainly through focus group discussions and in-depth interviews with government officials and communities. This paper highlights conceptually and practically how the Solidarity Economy, the Cooperative and Digitalization can be incorporated into a broader sustainability framework. This paper also demonstrates the potential and constraints in Desa Lestari program. This paper ends with an examination of possible plan of action for successful Desa Lestari program and local level development in general.