The paper discussed prospects and challenges of tourism industry in Meghalaya. It has found that tourism industry is growing in Meghalaya. It benefits on employment creation, income generation, revenue, foreign exchange, infrastructure building etc. Meghalaya is known for natural beauty, lush greenery, and hills. There are opportunities of ecotourism, adventure tourism, cultural tourism, and agri-tourism. It is rich in flora and fauna, heritage and traditions, culture, wildlife etc. Travellers can involve in rock climbing, water sports, caving, trekking, and hiking. Meghalaya has numerous travel attractions for tourists. Seven Sisters Falls, Mawphlang Sacred Forest, Elephant Falls, Mawsynram, Cherrapunji, Dawki River, Laitlum Canyon, Living Root Bridges, Umiam Lake and Nohakalikai Falls are the popular tourist destinations. Abysmal infrastructure, lack of alternatives means of transport, boundary issues, poor connectivity, ethnic conflicts, are the major challenges. Therefore, Government should implement proper policies for the mitigating the constrains and development of tourism in the state
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