Ecosystem services provided by wetlands are essential for communities living near wetlands, especially in an underdeveloped semi-arid landscape. The land use land cover changes and ecosystem degradation and water quality change over the past few decades have had immense effects on declining wetland ecosystem services. With the degradation, it is exerting superfluous effects on wetland communities including loss of livelihood, and decline in other wetland services like fishing, aquaculture, fuelwood, fodder, and many more. The present study attempts to assess the changing nature of wetland health, water quality, and declining ecosystem services of Mount Abu wetlands in Rajasthan, India. For assessing the change of wetland extent, we have used the remote sensing-based data for preparation of land use land cover change from 1992 to 2020. The water samples have been collected from the wetland, and different biophysical parameters of the water have been tested in the laboratory. A questionnaire-based household survey has been conducted to understand the perception of the wetland communities on the loss of ecosystem services over three decades. Further, a correlation and cluster assessment has been conducted to understand the degradation of wetland health in the selected wetlands. The study results indicated deteriorating conditions of wetland health and declining ecosystem services in the study area over the time periods. The land use land cover change analysis indicated a decrease in the spatial extent of the wetlands in the study area. Wetland communities are being affected due to the degradation of wetland health. The study recommended executing a wetland management plan for long-term conservation and livelihood management for the Mount Abu wetlands and communities.