This study focuses on addressing the innovation gap in the agricultural sector of Lao PDR, a critical component of the population's primary livelihood. Emphasizing the 9th National Socio-Economic Development Plan for 2021-2025 and the Ministry of Agriculture and Forestry Strategy 2025 and Vision 2030, the research examines recent innovation models in agriculture and rural development in the country. Out of the 30 models interviewed, 10 are highlighted for their significant impact on the development of agriculture, rural areas, and smallholder farmers, demonstrating the applicability of these innovations. The study explores potential innovations, such as the role of the Lao Farmer Network as a national platform for information sharing, the Coffee Production Cooperative in connecting domestic producers with foreign consumers, and the creative use of saffron to reduce waste from coffee processing. Despite their potential, certain innovations, including Beef Research and Development Farm cost-effective animal feed formulas and specific rice-growing techniques, encounter limited adoption among farmers or production groups. Challenges impeding widespread implementation encompass insufficient investment, an unsuitable environment, and limited markets. Notably, hydroponics vegetable farming poses challenges due to its requirement for significant investment and specialized knowledge, potentially excluding smallholder farmers. To foster agricultural innovation, the study proposes several policy implications: collaboration between governments and the private sector in R&D investment, improving access and adopt innovations through tax incentives and financial support, establishing a platform for technology sharing, allocating resources to education and training programs, prioritizing environmental sustainability in agricultural innovation to prevent harm to the environment.