The research study aimed to analyse the use of heritage site as an economic resource for local development in the heritage trail project Peshawar, Khyber Pakhtunkhwa. It tries to find out the economic function of cultural heritage by which it can attract tourism and at the same time contribute to improvement in living standards of the local community. In addition to this, the study has also evaluated that how all the three inter-linked aspects of heritage conservation, tourism promotion and local development can be sustained. The study has followed qualitative research strategy, employed semi-structured interviews and focused group discussions as research methods to collect first-hand primary data. No study of such kind has been conducted in Khyber Pakhtunkhwa so this study is the first of its kind in local context. Analysis furnished in this research work gives new insights on the important differences between planned positive changes intended by the heritage trail project and their acknowledgement, realisation and interpretation in local community and tourism sector. The study findings conclude that even though preservation of heritage assets along the heritage trail has been done to some extent but its branding and marketing for inviting tourism industry is not appreciable as it should be. Local community development is noticeable in infrastructural amenities but active involvement of citizens reflecting ownership and capacity building is meagre. Owing to such a situation the sustainability of heritage trail and its best utilization as an economic resource is not considerably achieved. Despite of limited scope and manifold limitations, the study offers site specific recommendations which can serve as an eye opener for future projects of this nature by learning from the gaps in this time-bound-project. Supervisor:- Dr. Zulfiqar Ali