In our days, a new path for rural regions is being actively promoted, namely by implementing innovative solutions to improve resilience, capitalize on local strengths and opportunities. This development model is based on a participatory approach for the strategy development and implementation, for the improvement of their economic, social and environmental conditions, in particular by mobilizing the solutions offered by digital technologies. Development models are focused on the implementation of specific tools for energy efficiency and the use of state-of-the-art technologies for increasing the well-being and economic revitalization of rural areas. This article analyzes theoretical-practical aspects on the implementation of the concept of smart village for rural localities by implementing innovative solutions. At the same time, the emphasis is on developing the principles of the circular economy in promoting the concept of smart village. The scientific-methodological basis served the studies of foreign international organizations from abroad, the works of local and foreign scientific researchers in the field of sustainable development of rural localities. The scientific research methodology, applied in this paper, served us to deepen the study and knowledge of the phenomenon of the sustainable development of rural communities through smart solutions. As means of research were used: induction and deduction, statistical data analysis, qualitative and quantitative research that allowed to deepen the essence of the phenomena, the identification of challenges in the implementation of smart solutions in local development activities.