Tourism is emerged as a large service-sector industry in the modern world which has become a global instrument of economic, cultural and social development. The country India, which have plenty of natural beauty and resources like cultural heritage, archaeological remains, historical ruins, bio-diversity, heritage site etc. enough scope for the tourism promotions. Manipur, “the Land of Jewels”, is one of the smallest and easternmost states in India having a geographical area 22,327 sq.km with salubrious climate, exotic greenery and rich flora besides its rich culture. Moreover the Wildlife sanctuaries and floating National parks of the state can attract the tourists all over the world. The state has over 50 tourists’ spots. It is the treasure house of various economic resources like natural scenic tourist spots, rich culture and ethnic heritage. Tourism has the greatest potential for generating income and employment opportunities in the state because Manipur is not only characterized by the blending of floras and faunas; it is also exceptionally rich in bio-diversity. Because of her natural assets, ethnic diversity and the societal ethos of hosts, tourism holds high potential in the state. This paper is mainly focussed on the problems and challenges of the state as well as the pitfalls in the tourism development in Manipur.