The relationship between international trade and environment is extremely debatable issue since the enhancement in trade openness. Panel of South Asian countries has been used in this study over the period of 1980-2016 to examine the impact of international trade on environment by decomposition scale, technique, composition and comparative advantage effect. Panel ARDL methodology is used to investigate the long run and short run relationship between trade and environment. The results suggest that the long run relationship exist between international trade and environment, whereas, the short run relation exist in scale effect, composition effect and comparative advantage effect. The results provide the modern approach to examine the impact of international trade in four sub-dimensions of trade openness. Hence, This study allocate more extensive policy mechanism for trade economist to improve method of environmentally feasible trade policies and agreements. Supervisor:- Dr. Hafsa Hina