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Synopsis This work reports the socio-economic correlates of the recent fertility decline in the rural areas of south India. After an in-depth discussion of the social and economic explores the aspects of differential fertility, effects of changing family structure, and intra-family relationship on fertility and pattern of fertility decision-making. A micro-demographic research methodology was used to undertake this investigation in a cluster of four villages about 65 km. Away from Bangalore. A beginning of fertility decline in this area was found running parallel to profound economic and social changes which have occurred especially since independence. Besides an important effect of declining infant and childhood mortalilty, the fertility decline was a function of material fertility associated with changes in the intrinsic behaviour of individuals. The behavioural changes were due to recent modification in intra-and inter-family relationship – the unilinearly extended family system appears to have given way to a bilateral extended system in which affines (wife’s side relatives) are playing a greater role in decision-making. The young are assuming decision-making responsibilities relatively early and women have progressed to a higher level of participation in the family and fertility decision making. The pattern is that such changes are more frequent in the large heterogeneous villages while the smaller and remote villages are yet to experience these forces of social change. A moderate increase in literacy, an exposure to urban influence and the growing importance of monetization have enabled villagers to think and act more independently than in the past and this has made them more secular. The study is an important reference work for academics and students of demography sociology, family welfare and rural development. Planers and development workers will find invaluable fact and figures to help in their policy-making.