Microfinance is a type of banking service that is provided to unemployed or low-income individuals or groups who would otherwise have no other means of gaining financial services. Microfinance today is a widely accepted tool for poverty alleviation and socio-economic empowerment of its beneficiaries. The beneficiaries being largely women group, the empowerment of women through microfinance is a widely studied and debated issue. The main objective of microfinance is to empower women. This research examined the role of micro finance institutions with respect to economic empowerment and poverty alleviation of women confide to Alwar region. An effort is also made to suggest the ways to increase women empowerment through micro finance. Simple graphical analysis and factor is been used to analyse the data which was collected through a self-made questionnaire.