Kudumbashree, launched by the Government of Kerala in 1998 for wiping out absolute poverty from the state through concerted community action under the leadership of Local Self Governments, is today one of the largest womenempowering projects in India. This is a study on the perception of effectiveness of group functioning by the members of women self-help groups in goat farming, operating under Kudumbashree, in Thrissur district, Kerala. Majority of the respondents (76%) perceived the effectiveness of functioning of their groups as medium. The functioning of the group in terms of official procedures (mean score 1.96) was perceived most effective by the members followed by that of interpersonal relationship (mean score 1.93) and entrepreneurial activities (mean score 1.76). As for attitude towards group activity, majority of the respondents (64.67%) expressed high level of favourableness. Also, there was significant positive correlation between the members' perception of effectiveness of group functioning and their attitude towards group activity (b = 0.265). The findings of the study provide valuable feedback to the policy makers of the SHG strategy to improvise appropriate strategies for enhancing the efficiency and sustainability of WSHGs. The study suggests the imperative need for imparting entrepreneurial training to the respondents in goat farming along with provision of resources such as good quality breeds, grazing land, feed, market and veterinary care.