AbstractCollaborative governance has received attention among scholars and practitioners for resolving governance issues across the globe. The government of Pakistan emphasizes local collaborative governance practices for resolving complex local problems through efficient public service delivery. This research is planned to examine the impact of local collaborative governance on public service delivery, institutional capacity building and how local collaborative governance influences public service delivery through the mediating mechanism of institutional capacity building. Using collaborative governance theory and collecting data from multisector organizations in the context of Pakistan, the results of this study revealed that local collaborative governance is significantly related to the dimensions of public service delivery and institutional capacity building. This research findings revealed that local collaborative governance engenders public service delivery through the dimensions of institutional capacity building including service capacity, evaluative capacity, and M&O capacity.