Shipbreaking is the process of breaking ships into parts and get them reusable and recyclable. it plays a major role in the economy of Pakistan but on the cost of environmental and human health. So, this study is based on finding environmental pollution and health cost faced by workers of shipbreaking industry, Gaddani. For testing water quality, the samples were collected from the study area from inside and outside of the shipbreaking yard. Seawater and well water were collected and analyzed through the laboratory. The physiochemical parameters were tested such as pH level, Biochemical Oxygen Demand, Total Dissolved Solid, Turbidity, Dissolved Oxygen, and Electrical Conductivity. The values of parameters such as Electric Conductivity, Turbidity, Dissolved Oxygen, and Total Dissolved Solid were found high compared to that of standard values in seawater and well water. Shipbreaking directly affects the environment by contamination through the beaching method. and it also impacts the workers’ health. The primary data was collected from shipbreaking workers through a questionnaire and the sample size was (n= 235). The impact on the health cost of the worker was measured through the Ordinary Least Square method on Stata software. There are socio-demographic variables that are also directly related to health cost such as age, education, marital status, and income. Where education has a negative relationship with health cost, marital status also has a significant positive relationship with health cost. Industry-related variables where the nature of employment has a negative relationship with a health cost, diseases have a positive relationship with a health cost. Similarly, experience also has positive relation, working hours, safety equipment has a negative relationship with a health cost and drug use. Among many policy interventions, the best policy is to issue a green passport to the ships before they come to shore for recycling. The standard-breaking methods should also be followed as suggested by International Labor Organization and other standards defined. Lastly, the use of personal protective measures and the working environment can be considered as a critical policy recommendation. Supervisor:- Dr. Nazia Bibi