This research undertakes to investigate the tourism impacts on the livelihood of local people of Malam Jabba and Kalam from district Swat in the Khyber Pakhtun Khwa province. Every year millions of national and foreign tourists visit Malam Jabba and Kalam. Qualitative research strategy was used to meet the research objectives. Both data i-e primary and secondary was used in this research. The primary data was collected from the local people Malam Jabba and Kalam, tourist and different restaurants, shopkeepers and hotels. The secondary data was collected from existing literature sources on the subject. In this research thematic analysis as used for analyzing data. Focus group discussion (FGDs) and sixty semi-structured interview were collected in Malam Jabba and Kalam. The findings of this study show that local people of Malam Jabba and Kalam are benefiting from the tourism through employment, poverty reduction, modernization and business opportunities. Seventy percent of the employees in Malam Jabba and Kalam are local people. At the same time it is found that local people are facing adverse cultural and environmental impacts such as pollution and damage of existing infrastructural facilities. The findings may be applied to Malam Jabba and Kalam to maximize the positive and minimize the negative tourism impacts on the local livelihood. This study will be helpful for policy makers and researchers that how they can achieve tourism sustainability in Malam Jabba and Kalam. Keywords: Malam Jabba, Local people, Local livelihood, Sustainable tourism, Tourism, Tourism impacts. Supervisor:- Dr. Muhammad Jehangir Khan