The present investigation assessed the toxic effects of aquatic pollution on fish collected from the contaminated station of Chakkamkandam lake. Both, water and fish (Mugil cephalus) samples were collected from lake water of Chakkamkandam lake at Guruvayur (Kerala, India). Fish are the most affected organisms by toxicants present in water bodies among all aquatic creatures because they are the dominant species in this ecosystem. When fish consume contaminated food, pollutants/toxicants enter the fish's digestive system. It can also enter through the fish's gills and skin. After absorption, they are finally transported by the bloodstream to the organs and tissues where they accumulate.Water quality parameters were assessed and various blood parameters of the fish were analyzed. The changes in haemoglobin concentration, red blood cells, and white blood cell count were studied. The secondary blood indices were also calculated. Compared to the reference site, the fish from the lake water showed decreased numbers of RBC, Haemoglobin (Hb), and hematocrit (Hct). However, the values of WBC count, and Mean Corpuscular Haemoglobin Concentration (MCHC) increased significantly. The changes in hematological parameters of fish from the polluted station revealed that the health of fish is disturbed. Additionally, the results suggested that blood parameters are useful, tools in monitoring of aquatic pollution. These biomarkers show that fish have macrocytic hypochromic anemia. Leucocytosis showed a general defence response against pollution-induced toxicity. In conclusion, the results of the current study showed that the water quality impacted hematological profile of the fish Mugil cephalus collected from lake water.