This paper is to discuss the participatory budgeting (PB) in local governance. It examines the position of PB in democracies and discusses the importance as well by discussing the relevant democratic theories. At the same time, the paper compares ten PB processes of different countries’ local governments from the different regions of the world and analyzes the similarities and differences. The paper alsoexaminesthe adoptability of PB in the local government Union Parishad(UP) of Bangladesh and provides lessons for effective implementation too.It is anticipated that PB is an effective tool for engaging citizen in policy decision-making as it is getting importance in governance discourse day by day and gradually becoming a popular democratic practice. It is also the most effective process of attracting citizens in their own interest. As a new democratic innovation PB has already been established as a tool of direct democratic practice in policy decision-making process.