This chapter examines urban-rural disparities in poverty and social exclusion in Serbia, emphasising the critical role of location in influencing poverty risk. Rooted in theoretical perspectives on regional economic disparities, the study highlights Serbia's pronounced urban-rural divide, driven by unequal access to public services, employment, and infrastructure. A probit regression analysis is conducted to determine the impact of urbanisation, education, health, employment, age, and gender on poverty risk. Results indicate that residing in rural areas significantly increases the probability of poverty, with lower education, poorer health, and unemployment further heightening this risk. The findings underscore the necessity of targeted policy interventions, particularly those involving local governance, to address these disparities. Recommendations include enhancing education, healthcare accessibility, and economic opportunities in rural areas, aiming to alleviate poverty by promoting equitable access to resources and reducing the urban-rural gap. By addressing the unique challenges faced by rural communities in Serbia, this study contributes to the discourse on spatial justice and supports inclusive development strategies, advocating for comprehensive local governance approaches to bridge urban-rural inequalities.