Wetlands are important ecosystems, and few of them, owing to unique characteristics, have been designated the status of Ramsar sites under the convention of wetlands. Despite the status, few of these wetlands are under threat owing to their social importance. Renuka wetland is one such important Ramsar site in India, which is culturally an embodiment of the Goddess Renuka ji. An international fair is held every year at the lake which attracts thousands of pilgrims and tourists. This event is one of the major contributors to anthropogenic risk; other pressures are siltation, pollution, land use activities, and invasive species. Under such a scenario, it becomes important to assess the health of wetlands to take timely decisions about their management. This study evaluates the health of Renuka wetland, using the Pressure State and Response (PSR) model. Relevant data related to the wetland and its catchment from a wide spectrum of sources, namely, field, laboratory, and remote sensing were combined to assess the health of the wetland. Ten indicators were identified, and Analytic Hierarchy Process (AHP) was used to assign weights to the indicators. The wetland health index of Renuka wetland is 0.35, indicating that the lake is in poor condition exhibiting degraded functioning, high external pressure, low vigor, poor resilience, and stability. The study also revealed that the water quality deteriorates post-fair. Thus, the wetland needs attention in terms of management so that the health of the lake improves and is sustained in the future. The study contributes to Sustainable Development Goal 6.6 which focuses on protecting and restoring water-related ecosystems and aims at healthier ecosystems.