Yogyakarta, one of Indonesia’s most sought-after tourist destinations, has experienced a substantial increase in tourist arrivals in recent years. While tourism contributes significantly to the local economy, it also brings challenges, particularly overtourism, which exacerbates environmental degradation, overcrowding, traffic congestion, and social disruptions. This paper investigates the impact of overtourism on Yogyakarta and presents strategies to mitigate these adverse effects while fostering sustainable tourism practices. Using a qualitative research approach, including interviews, field observations, and policy analysis, the study identifies key strategies to address overtourism. These include the implementation of visitor limits, the development of alternative tourist destinations, the integration of digital technology for efficient tourist flow management, and the promotion of awareness campaigns for both tourists and local communities. The findings underscore the need for collaboration among government authorities, tourism businesses, and local residents to ensure that tourism growth is sustainable and benefits both the economy and the environment. By adopting these strategies, Yogyakarta can enhance its tourism experience, preserve its cultural and natural heritage, and ensure the long-term sustainability of its tourism industry.