Across Europe, rural regions are confronted with accelerating demographic decline and intensifying climate pressures, undermining cohesion, prosperity, and transformative capacity. The RUDI project tackles these challenges by (1) advancing understanding of how demographic trends interact with systemic social, economic and ecological barriers and opportunities for rural innovation under climate change; (2) empowering municipalities, communities, and stakeholders with evidence-based tools for active decision-making on demographic resilience and sustainability challenges; and (3) co-creating and testing pilot solutions that enhance the well-being and the attractiveness of rural areas. RUDI will establish eight Rural Innovation Clusters and associated Rural Living Labs as participatory hubs where municipalities, SMEs, social economy actors, civil society, and research institutions jointly design, implement, and evaluate innovations such as cooperative care models, circular agri-food systems, and climate-resilient mobility. An innovative Demography–Climate Dashboard and Policy Support Package will equip decision-makers with actionable data and strategies, while cascade funding and a Network for Rural Transformation will ensure replication, cross-regional learning, and scaling. By combining robust evidence, inclusive Quadruple Helix governance, and practical innovation, RUDI will equip rural territories with the soft and hard skills to overcome demographic and climate challenges, reinforce social cohesion, and contribute to the EU’s Long-Term Vision for Rural Areas, the Rural Pact, the European Green Deal, and related policy frameworks.