The paper presents the analysis of the economic and environmental effect of land consolidation on the example of the village of Hucisko situated in the administrative district of Leżajsk, Podkarpackie Province. Rural areas in Poland need changes related with an improvement of their competitive position in the European market. The object of the study is situated in the Podkarpackie Province which is characterised by fairly high land fragmentation and the occurrence of irregular-shaped and relatively small plots. Farms in South and South-Eastern Poland require modification with regard to their size or to the shape of their area. Within the area under analysis, land consolidation was performed in the years 2011–2013. The main purpose of the consolidation was to eliminate the troublesome checkerboard of fields. The performed land consolidation contributed to a significant improvement of living and work conditions of the local inhabitants. It can be also stated that the quality of the environment and the cultural values of the village have been enhanced.