The uprising urbanization significantly impacts the environment status of any country. This phenomenon commonly has been observed in developing countries, including Pakistan where it is in very fast track. Number of studies presented their particular theoretical and empirical models for the exploration of this relationship in case of Pakistan. These studies have two main flaws on theoretical and empirical grounds. First, all previous studies ignore some very important factors of urbanization, like cities land extension and reduction in agriculture land. Secondly, due to these missing relevant variables, their econometric models violated the axiom of the correct specification that is why all these models are mis-specified and their results are statistically invalid. This study made two contributions with this particular setup, first study explored the potential determinants of urbanization and environmental status by considering these missing variables. Second, by using these potential variables of urbanization and environmental status study developed a general model which contains almost of the relevant variables. This general model provides true impact of most of the variables. Study utilized time series data from the period of 1970 to 2017. The ARDL model and bound testing was employed for exploration of the long-run and short-run impacts of urbanization on environmental status. The study proved that in context of Pakistan, various determinants are responsible for urban expansion leading to ecological degradation in the long run. It is therefore, suggested to focus on the policies related to urban development to secure natural habitat. For this, concept of eco-friendly products, alternative modes of renewable energies and green revolution should be considered in order to safeguard ecology from futuristic point of view.. Supervisor:- Dr. Usman Mustafa