A typical towed sensor arraywet-end system consists of electro optic-mechanical tow cables, active transmitter unit and towed sensor array modules followed by a tail rope at the aft-end. The sensor array and cables are designed to withstand harsh marine environment and hydrodynamic forces experienced due to waves and currents during operation. Nevertheless, the strength member termination in the tow cable and array are vulnerable to failure due to dynamic loading during repeated deployment and retrieval operations.To prevent the loss of cable and array in such cases, a recovery system is required. In this paper, the design of a Depth Activated Inflatable Recovery System for undersea towed sensor arrays is presented. The envisaged system is a cylindrical, flexible module with similar diameter as the sensor array module and maximum length of 10 m which can be mechanically attached to the aft-end of the towed array. The system consists of a pressure switch, which gets activated as the detached array sinks and reaches a pre-set depth of 250 m. This completes an electrical circuit connected to a power source through which high current passes to an electro-explosive pyro-cartridge and activates it. This generates enough force to push a piston mechanism which punctures a CO2 cylinder. The CO2 gas fills into an inflatable bag. Multiple numbers of such inflatable bags, when opened, will provide sufficient buoyancy for array to move up to the surface. The paper discusses the design methodology, development, assembly and testing of various sub-systems, challenges faced and innovative solutions implemented for realizing an effective Recovery System.