Present study highlighted the importance of examining the toxicological profile of size-segregated particulate matter (PM) bound metals (Fe, Mn, Ni, Pb, Zn, Cu, Cr, Co, Cd) at urban site of Pune city, India. The total aerosol mass was composed of 61.2% and 38% fine and coarse particles, respectively with maximum distribution observed in 4.7–2.1 μm size mode. Elemental size distributions indicated the prime association of Fe, Mn and Zn with coarse sized PM, while remaining metals were predominantly associated with fine PM. Seasonal mass and elemental distribution profile of size-resolved PM was characterized with maximum concentration found in winter season. Enrichment factor analysis revealed the contribution of anthropogenic emissions to Co and Ni in fine mode while less enriched metals, Fe and Mn were allied with crustal and natural sources. Oxidative potential of particles in terms of Dithiothreitol (DTT) loss was found to be maximum in the size range of 4.7–1.1 μm with dominant contribution of PM bound metals (Fe, Cu, Cr, Mn, Ni, Pb, and Zn). On exposure to PM samples, prominent enhancement in the expression of cytokines (especially TNFα) as compared to the control has confirmed their inflammatory nature. Incubation of A549 cells with PM suspension (75 mg/ml) caused pronounced reduction (p < 0.01) in cell viability with significant morphological changes, associated with cell death. Respiratory deposition doses of PM in head region were found to be more impacted by coarse sized particles while contribution of fine PM was dominant in alveolar and tracheobronchial region, signifying serious health risks to the exposed population. In addition to the basic knowledge of toxicity mechanisms associated with size fractionated PM, these results together with the analysis of correlation between PM bound metals and biological assays will be relevant to better characterize the potential health risks and possible future mitigation strategies.