Karnataka is a state in India with a rich cultural heritage and a diverse range of traditional practices, including Ayurveda, the ancient Indian system of medicine. The increasing popularity of Ayurveda among tourists has made it a significant contributor to the state's economy, particularly in the form of Ayurvedic medical tourism. This research paper provides a comprehensive analysis of the condition of Karnataka's Ayurvedic medical tourism industry, with a comparative study of North and South Karnataka. According to a report by the Karnataka State Tourism Development Corporation (KSTDC), the state's tourism sector contributed 6.5% to its GDP in 2018, generating a revenue of INR 45,000 crore. The Ayurvedic medical tourism sector played a crucial role in this growth, with a contribution of INR 400 crore in 2018. The industry is expected to grow further in the coming years, with estimates suggesting a growth rate of 20-25% annually. North Karnataka and South Karnataka have different potentials and challenges for developing the Ayurvedic medical tourism industry. North Karnataka is less developed compared to South Karnataka and has the potential to develop Ayurvedic medical tourism. North Karnataka has a rich history and cultural heritage, with several ancient temples, forts, and palaces, which can attract tourists. North Karnataka has several Ayurvedic medical tourism centers that offer traditional Ayurvedic treatments and therapies. On the other hand, South Karnataka is more advanced and has already established Ayurvedic medical tourism centers. South Karnataka has several cultural and historical sites, such as the Mysore Palace and the Srirangapatna Fort, waterfalls, high hills in coorge, chikkamagalore, uttarakannada, Udupi, Mangalore, shimogga etc.which can attract tourists. The region also has a higher concentration of wellness resorts and luxury hotels compared to North Karnataka. However, South Karnataka faces challenges such as high competition and the need to maintain quality standards to retain its position as a popular destination for Ayurvedic medical tourism. Karnataka's Ayurvedic medical tourism industry has several opportunities for growth. The increasing popularity of Ayurveda among tourists, coupled with the state's rich cultural heritage and natural beauty, offers tremendous potential for the industry. The state government has also taken initiatives to promote Ayurvedic medical tourism, However, the industry also faces several challenges. One of the major challenges is the lack of standardization and regulation in the Ayurvedic medical tourism sector. The industry needs to maintain quality standards to retain its position as a popular destination for medical tourists. Another challenge is the high competition within the industry, with several other states in India promoting Ayurvedic medical tourism. Karnataka needs to develop unique offerings and experiences to attract tourists and differentiate itself from its competitors. In conclusion, Karnataka's Ayurvedic medical tourism industry has a significant economic impact on the state's economy, and both North and South Karnataka have different potentials and challenges for developing the industry. While the industry has several opportunities for growth, it also faces challenges such as lack of standardization and high competition. The state government's initiatives to promote Ayurvedic medical tourism, coupled with efforts by the industry to maintain quality standards and offer unique experiences, can help the industry realize its potential and contribute further to the state's economy.