Tourism development, as one of the outward oriented economic policies, is expected to create more job opportunities, increase income of the local community and would also carry a social, cultural and environmental value with itself. However, as is the case with many economic policies, concerns have been raised with regard to the negative social, cultural and environmental consequences associated with tourism development. Thus the purpose of this study is to know the positive and negative perceived social, cultural, and environmental impacts of tourism on local communities in Swat Valley. To this end, data has been collected, using a well structured and self administered questionnaire, from 250 respondents from Swat valley. The analytical tool kit of the study includes descriptive statistics (such as frequency distributions and means) to shed light on the socioeconomic and demographic characteristics of the respondents, and some group statistics along with independent sample t-test for comparing various means of interest. The findings of the study with respect to net tourism effects are mixed. In particularly, the analysis reveals that the perceived negative social impacts of tourism are greater than the perceived positive social impacts of tourism in Swat Valley. Similar is the case with net perceived environmental impacts of tourism where negative environmental consequences of tourism in Swat valley outweigh the positive environmental impacts. However, the findings of this study shows that perceived positive cultural impacts of tourism in Swat are significantly greater from the negative perceived cultural impacts. Thus, in light of these findings, we recommend some policy options for the authorities so that tourism development in the area is made more fruitful for the local community. In particular, we recommend the law and order enforcing agencies to control some anti social and cultural aspects of tourism (e.g. crime) and to the tourism industry to devise policies for effectively reducing stench and other waste materials generated by the industry. Supervisor:- Dr Usman Mustafa