The paper titled ‘An Exploratory Study on Status, Prospects and Challenges of Tourism Industry in Telangana State, India’ discussed status, prospects and challenges of tourism industry in Telangana. It has found that Telangana is renowned for its temples, forests, waterfalls, forts, monuments and historical places. Hyderabad is famous for Charminar and the fort of Golconda. There are multitude of bazaars, churches, temples and masjids. Telangana has many stunning and revered temples. They are famous for their architectural grandeur, spiritual and historical significance. They are symbolic of the tradition prevalent and secular culture. There is bright scope of religious tourism. Hyderabadi Biryani is the crown jewel of Telangana’s culinary repertoire. Cuisine in Hyderabad are influence of Muslim Nizams and also imparts Arab and Persian influence. There are around 33 tribes in the state. Around 12 tribes have been identified as Primitive Tribal Groups. The state has positive prospect in rural tourism, agricultural tourism, heritage tourism, eco-tourism, cultural tourism, advantages tourism, sports tourism, and agro-tourism. Growth of medical tourism is also impressive. Despite the challenges posed by the pandemic, domestic tourism has shown a steady recovery. Tourism is a growing industry. It has contributed more in the economy of the state. Therefore, tourism department should implement proper strategies for mitigating challenges before the tourism industry of the state.