Following the collapse of the Soviet Union, donor agencies embraced the idea of civil society development as critical to democratisation and successful transition. The belief was that stronger civil societies would promote good governance, increased civic participation and social trust. Examining NGOs' participation in Armenia's PRSP process, this paper asks whether NGOs have played or have the potential to play a part in promoting good governance and sustainable development in Armenia through their participation in such initiatives as the PRSP. The paper uses the ‘inclusion’, ‘exclusion’ and ‘hybrid’ stances1 to analyse the diverse approaches that local NGOs have embraced vis a vis the PRSP during the implementation stage. By analysing these stances, the paper demonstrates the diversity of Armenian civil society and considers how these stances affect NGOs ability to influence policy. 1 Copyright © 2006 John Wiley & Sons, Ltd.