<p>Urbanization scholarship has mostly target on large metropolitan regions, chiefly overlooking the complex and varied transformations that are taking place silently within small towns, specifically in the Global South. These settlements constitute critical but under-theorized spaces where rural and urban processes intersect, labour markets diverge and everyday urbanism takes shape beyond the limelight of formal planning. This review re-evaluates the role of small towns by looking over them through the lenses of less explored theories like subaltern urbanization and planetary urbanization, the frameworks that challenge metro-centric assumptions and accentuate decentralized, locally embedded urban transitions. Considering global comparative experiences and a reinforced theoretical synthesis, the paper situates the discussion within India’s distinctive urbanization trajectory, where the rapid rise of census towns has reshaped the demographic and spatial landscape. Particular attention is given to West Bengal, the state with the highest number of census towns, to illustrate how hybrid governance structures, infrastructural deficits, and the absence of statutory recognition hinder their development despite their functional urbanity. The review identifies critical research gaps which are conceptual, empirical, and methodological and argues for a more integrated, interdisciplinary agenda that combines spatial analysis, governance research, and socio-economic inquiry. By foregrounding small towns as active agents rather than peripheral settlements, the paper demands policy frameworks and planning approaches that validate their strategic importance in shaping equitable and sustainable urban prospect.</p>