The purpose of the study was to investigate how chieftaincy system has been effective at facilitating grassroots mobilization in promoting socio-economic development in the Effutu community. The study employed the theory of functionalism as it theoretical framework to explain the functions that chiefs play in the society using the chieftaincy institution as a system with interrelated parts. The study employed a qualitative research approach and a descriptive case study design. Data was generated from fifteen (15) participants with the aid of interview-guide and focus group discussion. The purposive and accidental sampling techniques were used to select the respondents. Narratives approach was used for the analysis. Regarding the state of chieftaincy in Effutu, the study revealed that Ghartey and Ayiribi-Aquah families are the major actors of the Effutu chieftaincy disputes. Other actors include Asafo company, political parties, government and the police. Non-natives and business men have also become actors in one form or the other. Finding on the role of chieftainship in the development of Effutu Traditional Area revealed that the socio-cultural activities of the community have been affected negatively. The poor state of chieftaincy has led to low patronage of the Aboakyir festival. The study recommended that the government through the national house of chiefs and other stakeholders should endeavour to settle amicably the Effutu Chieftaincy dispute with immediate effect.