This study shows that the Mardan heritage tourism sector has great potential and, to a certain extent, has a positive impact on the local economy. In the context of this quest, this study generally attributes that the heritage tourism industry has an imperative role in creating new job opportunities and as well as poverty reduction for the local inhabitants of this region. Mardan heritage tourism has recently gained a boost in stimulating economic growth and local perception concerning to heritage tourism in promoting economic activities improving the way of life of locals. On account of the literary knowledge framework, this research focuses to highlight the issues in development and promotion of heritage tourism sites and to offer a way forward to overcome the role of government in maintaining the conservation initiatives of heritage tourism and its socio-economic and environmental challenges which needs to be erudite for policymakers where the locals do not know about these precious sites. The purpose of this study is to explore the heritage tourism impacts on revenue-generating disposals, environmental, local people exclusion, security, inflation, and as well as economic related challenges by local and international visitors. In Pakistan, the provincial-level Mardan region has seen the fastest growth in tourist arrivals, and it has been suggested that tourism-related activities should be considered an essential element. Even so, Pakistan’s tourism industry appears to be at its zenith and the country’s economic and social development has not been fruitful as it should be. With regard to tourism growth in Mardan, the region faces multiple serious challenges, including heritage tourism environmental challenges, revenue-generating disposals, local people exclusion, tourist security, and inflation. The government’s goal has failed to deliver on its enormous potential even after the promotion of tourism has been one of the main agenda of the PTI government. Supervisor:- Dr. Muhammad Jehangir Khan