The implementation process of an IT Industry focuses on Software Development activities and efficient practices of software Project Management. Software Project Management is a well-organized task, which is an assemblage of numerous proceedings done in order to attain an objective. An agile methodology is an effective tool to accomplish successful implementation of software projects. Agile development is contemporarymethod which deals with speedydistribution of quality software. Agile helps to involve customers completely in development of software, so the business requirements of customer can be accomplished, ultimately it reaches to the development organizations and customersbusiness objective. Research paper highlights the agile development cycle, details of agile methodology, and three different approaches of agile methodologies, Significance of SCRUM methodology, Extreme Programming and Feature Driven Development methodology.Advantages and limitations of agile methodologyare elaborates to help IT professionals and academician.The thought of paper accomplishes on the range of agile models and their performance with respect to effective software project management practices.

Keywords : Agile Development Cycle, Agile Methodology, Project Management, Software Development, SCRUM, Extreme Programming, Feature Driven Development.