The Village law has made the village the subject of development. Villages and villagers jointly initiate village development in order to create a better livelihood and village life. Village funds as village capacity in development have the potential to improve community welfare. This Research is a qualitative research with a descriptive analysis approach in order to analyze the planning and implementation process of village funds in improving community welfare from a sharia economic perspective. Data collection techniques used are interview, observation and documentation methods. The governments, community leaders and villagers became informants so that a broad perspective was obtained about village funds and their implications for walfare. The results showed that the planning and implementation of village funds was not yet participatory, the grassroots community had not been involved. Physical infrastructure became the priority of discussion during the planning process. In an effort to improve welfare in 2019 touching the aspects of health, education, and community residence. In 2020, village funds have a greater role in increasing community income in the form the cash assistance to the community in overcoming the covid 19 pandemic. In order to achieve a comprehensive development, in the process must apply sharia economic values. The value of integrity in the devekopment process in the form of justice, trust and fulfillment of reponsibilities as well as helping each other.