Liquefaction causes ground failure which leads to destruction of structures and foundations as observed in recent earthquakes. Estimation of liquefaction potential is of great importance in seismic prone zones as this will help in suggesting proper measures for construction design and reduce the liquefaction risk. Many research works have been carried out in this area since long time. Still much clarity is required in this area. There are many methods available e.g. direct evaluation using cyclic laboratory tests, correlations between field observed behaviour and in situ recorded soil strength, numerical modelling using soil constitutive models, probabilistic approaches etc. Many notable updates in correlation methods have been observed in literature. Identification of a particular liquefaction potential assessment method which is most appropriate for the types of soil present at a site is required. Advances in estimation of liquefaction potential have been presented in this paper. A case study has been done with regard to estimation of liquefaction potential of a site. The results of the present study will be helpful in identifying liquefaction prone zones in the study area. The liquefaction hazard maps will be helpful for design of structures and foundations.