The economy of the State of Punjab has transformed dramatically due to rapid industrialization, specifically in the urban centres, notably Ludhiana, Jalandhar, Amritsar, and Mandi Gobindgarh. However, amid this development, there has been severe environmental damages and emergence of new urban challenges. Urban infrastructure, ecological sustainability, and public health are under mounting strain in these industrial cities of the State. In Ludhiana and Mandi Gobindgarh, uncontrolled emissions are polluting the air, and nearby waterways are becoming contaminated by industrial wastes. The disposal of hazardous garbage in areas close to industrial estates also raises concerns about neighbourhood cleanliness. Poor waste management and lax environmental regulation highlight how urgently industrial sustainability is needed. The research aims to investigate as to how the unfettered industrial growth in the Punjab has led to poor waste management, and infestation of the air and water. As a part of the study, we conducted a primary survey in several industrial towns in Punjab, interviewing a diverse pool of stakeholders including government representatives, industrialists along with residents living near developed industrial sectors. This qualitative model aimed at to have a deeper insight into the environmental issues caused by industrialization in these areas. Additionally, the chapter explores how the policy gaps impact the control of industrial expansion and enforcing environmental standards. Ultimately, the research underlines the demand for a cohesive strategy, informed by global practices, that puts sustainable development foremost.