<?xml version="1.0"?>
<edgarSubmission>

    <schemaVersion>X0603</schemaVersion>

    <submissionType>D</submissionType>

    <testOrLive>LIVE</testOrLive>

    <primaryIssuer>
        <cik>0001313911</cik>
        <entityName>Rally Software Development Corp</entityName>
        <issuerAddress>
            <street1>4001 DISCOVERY DRIVE</street1>
            <street2>SUITE 220</street2>
            <city>BOULDER</city>
            <stateOrCountry>CO</stateOrCountry>
            <zipCode>80303</zipCode>
        </issuerAddress>
        <issuerPhoneNumber>303-565-2800</issuerPhoneNumber>
        <jurisdictionOfInc>DELAWARE</jurisdictionOfInc>
        <issuerPreviousNameList>
            <value>None</value>
        </issuerPreviousNameList>
        <edgarPreviousNameList>
            <value>None</value>
        </edgarPreviousNameList>
        <entityType>Corporation</entityType>
        <yearOfInc>
            <overFiveYears>true</overFiveYears>
        </yearOfInc>
    </primaryIssuer>

    <relatedPersonsList>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Timothy</firstName>
                <middleName>A</middleName>
                <lastName>Miller</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>4001 Discovery Drive, Ste. 220</street1>
                <city>Boulder</city>
                <stateOrCountry>CO</stateOrCountry>
                <zipCode>80303</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
                <relationship>Director</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification></relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Ryan</firstName>
                <lastName>Martens</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>4001 Discovery Drive, Ste 220</street1>
                <city>Boulder</city>
                <stateOrCountry>CO</stateOrCountry>
                <zipCode>80303</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification></relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>James</firstName>
                <middleName>M</middleName>
                <lastName>Lejeal</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>4001 Discovery Drive, Ste 220</street1>
                <city>Boulder</city>
                <stateOrCountry>CO</stateOrCountry>
                <zipCode>80303</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Executive Officer</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification></relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Bradley</firstName>
                <lastName>Feld</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>4001 Discovery Drive, Ste 220</street1>
                <city>Boulder</city>
                <stateOrCountry>CO</stateOrCountry>
                <zipCode>80303</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Director</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification></relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Elizabeth</firstName>
                <lastName>Reeves</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>4001 Discovery Drive, Ste. 220</street1>
                <city>Boulder</city>
                <stateOrCountry>CO</stateOrCountry>
                <zipCode>80303</zipCode>
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            <relatedPersonRelationshipList>
                <relationship>Director</relationship>
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            <relationshipClarification></relationshipClarification>
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        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Peter</firstName>
                <lastName>Roshko</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>4001 Discovery Drive, Ste. 220</street1>
                <city>Boulder</city>
                <stateOrCountry>CO</stateOrCountry>
                <zipCode>80303</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Director</relationship>
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            <relationshipClarification></relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Bryan</firstName>
                <lastName>Stolle</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>4001 Discovery Drive, Ste 220</street1>
                <city>Boulder</city>
                <stateOrCountry>CO</stateOrCountry>
                <zipCode>80303</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Director</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification></relationshipClarification>
        </relatedPersonInfo>
        <relatedPersonInfo>
            <relatedPersonName>
                <firstName>Tom</firstName>
                <lastName>Bogan</lastName>
            </relatedPersonName>
            <relatedPersonAddress>
                <street1>4001 Discovery Drive, Ste 220</street1>
                <city>Boulder</city>
                <stateOrCountry>CO</stateOrCountry>
                <zipCode>80303</zipCode>
            </relatedPersonAddress>
            <relatedPersonRelationshipList>
                <relationship>Director</relationship>
            </relatedPersonRelationshipList>
            <relationshipClarification></relationshipClarification>
        </relatedPersonInfo>
    </relatedPersonsList>

    <offeringData>
        <industryGroup>
            <industryGroupType>Other Technology</industryGroupType>
        </industryGroup>
        <issuerSize>
            <revenueRange>Decline to Disclose</revenueRange>
        </issuerSize>
        <federalExemptionsExclusions>
            <item>06</item>
        </federalExemptionsExclusions>
        <typeOfFiling>
            <newOrAmendment>
                <isAmendment>false</isAmendment>
            </newOrAmendment>
            <dateOfFirstSale>
                <value>2009-12-18</value>
            </dateOfFirstSale>
        </typeOfFiling>
        <durationOfOffering>
            <moreThanOneYear>false</moreThanOneYear>
        </durationOfOffering>
        <typesOfSecuritiesOffered>
            <isEquityType>true</isEquityType>
        </typesOfSecuritiesOffered>
        <businessCombinationTransaction>
            <isBusinessCombinationTransaction>false</isBusinessCombinationTransaction>
            <clarificationOfResponse></clarificationOfResponse>
        </businessCombinationTransaction>
        <minimumInvestmentAccepted>0</minimumInvestmentAccepted>
        <salesCompensationList></salesCompensationList>
        <offeringSalesAmounts>
            <totalOfferingAmount>15999716</totalOfferingAmount>
            <totalAmountSold>15999716</totalAmountSold>
            <totalRemaining>0</totalRemaining>
            <clarificationOfResponse></clarificationOfResponse>
        </offeringSalesAmounts>
        <investors>
            <hasNonAccreditedInvestors>false</hasNonAccreditedInvestors>
            <totalNumberAlreadyInvested>15</totalNumberAlreadyInvested>
        </investors>
        <salesCommissionsFindersFees>
            <salesCommissions>
                <dollarAmount>0</dollarAmount>
            </salesCommissions>
            <findersFees>
                <dollarAmount>0</dollarAmount>
            </findersFees>
            <clarificationOfResponse></clarificationOfResponse>
        </salesCommissionsFindersFees>
        <useOfProceeds>
            <grossProceedsUsed>
                <dollarAmount>0</dollarAmount>
                <isEstimate>true</isEstimate>
            </grossProceedsUsed>
            <clarificationOfResponse></clarificationOfResponse>
        </useOfProceeds>
        <signatureBlock>
            <authorizedRepresentative>false</authorizedRepresentative>
            <signature>
                <issuerName>Rally Software Development Corp</issuerName>
                <signatureName>/s/ James M. Lejeal</signatureName>
                <nameOfSigner>James M. Lejeal</nameOfSigner>
                <signatureTitle>Chief Financial Officer</signatureTitle>
                <signatureDate>2009-12-31</signatureDate>
            </signature>
        </signatureBlock>
    </offeringData>
</edgarSubmission>
