This study reveals the considerable impact of stone crushing industry on human health and on the environment. Moreover the study also shows that how Stone Crushing Unit’s workers and owners respond to health problems and what are the existing environmental health laws at both national and provincial basis. Primary data has been collected from 280 respondents in Malakand district and respondents were classified into two groups Controlled group and uncontrolled group (treatment group) and they were interviewed through pre-tested questionnaires. For empirical analyses a Propensity Score matching model has been estimated using Stata software to evaluate the environmental pollution based health cost. The result shows that average treatment expenditure is greater than 10261.14 rupees for those people who are living in a range of 500 meters with crush plants as compared to those who are out of 500 meters range. Moreover the result shows that the relationship between the groups is significant. Direct exposure to stone crushing units the related diseases such as respiratory problem, asthma skin and depression in treatment group were high as compare with the controlled group. Study recommends some polices interventions and Strict and proper implementation of the existing PAKISTAN ENVIONMENTAL PROTECTION ACT, (PEPA) 1997 is need to be enforced to curb the environmental pollution generating by stone crushing unit and to make it sustainable. Supervisor:- Dr Mahmood Khalid