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Purpose: Income inequality issue becomes as vital agenda to deal with, especially for developing countries. In the presence of huge income inequality in most developing countries, solutions are certainly welcome. Theoretically, remittances have the potential to address the issue of income inequality, whereby bigger size of remittances may promote a sizeable decrease in income inequality. Indeed, the main objective of this study is to investigate the contribution of remittances in alleviating income inequality in developing countries. This study also analyzes the moderating effect of entrepreneurship, rural development and infrastructure on remittances-income inequality relationship in developing countries. Design/methodology/approach: A dynamic panel estimator is applied to examine remittances-income inequality nexus, given the Generalized Method of Moment (GMM) method. This study utilizes the data from 2009 until 2017 and covers 47 developing countries. Findings: The findings of remittances reveal that they are unlikely helpful to reduce income inequality. Nonetheless, its desired role can be achieved if the recipients among the poor can allocate more for entrepreneurship activities as well as supported by better rural development and infrastructure. Due to that, this study believed that if government can design effective policy to guidance the recipients of remittances to fully maximize the usage not purely for daily one-off consumption, but also to include life-standard enhancing activities, mainly through entrepreneurship, rural development and infrastructure, income inequality can be lowered. Research limitations/implications: In general, this study may serve as a stepping stone for further empirical work regarding the income inequality issue. This study believes that the insignificant effect of remittances on income inequality could be due to the fact that low level of remittances flows in developing countries and also poor utilization of the money among the poor. Alternatively, it is important to promote and enhance more remittances flows in developing countries. Practical implications: As part of the strategies to uncover the true impact of remittances, this study also has highlighted the moderating role of entrepreneurship, rural development and infrastructure. This study finds that the presence of remittances will decrease income inequality by increasing entrepreneurship, rural development and infrastucture. Originality: In this study, the potential solutions factor is proposed to address the issue of income inequality, known as remittances. More importantly, this study also suggests that remittances can be more effective in combating income inequality if the strategies are also combined with productive entrepreneurship activities and appropriate rural development and infrastructure in creating more economic opportunities. Keywords: Remittances, income inequality, entrepreneurship, rural development and infrastructure, developing countries, dynamic panel data., Introduction The important of fair income distribution in assisting economic development is crucial in act as the primary drivers for economic growth (World Bank, 2013a; Ostry et al., 2014; Rose [...]