During the last two decades, sport-based social intervention programs have been conceptualized as potential vehicles for broad, sustainable social development, especially in the most disadvantaged communities in the world. It is assumed that there is clearly potential for sport to be used as a new engine in advancing various dimensions of development, something grasped by a growing number of policy makers. In this social milieu, the Sport for Development and Peace (SDP) movement has recently been institutionalized with a number of policy documents and thematic studies. This paper addresses this concept by considering the potential and limitations of the use of SDP as a ‘cost-effective’ solution to ameliorating social problems. In conclusion, this paper highlights that there is a need to test the claims empirically and to monitor and evaluate SDP programs in more rigorous and evidence-based approaches.