The travel has been an integral part of human life through ages. Tourism is one of the alternative ways that can create new jobs and reduce poverty for the communities in the remote and resource scare regions. It can be helpful especially in the mountainous regions where agriculture is difficult and not so profitable business. Tourism plays an important role in regional development and thus in national development and diversification of national economy. The present study is an attempt to assess the impact of tourism in district Nainital. Nainital known as the ‘Lake city of India’ is one the most favored destinations of tourists. The study was primarily focused on Nainital town and its surrounding tourist areas. The results were drawn based on both primary and secondary data. It was analyzed during the study that tourism creates a lot of opportunities for people in these areas and thus prevent migration. But it has a sad picture as well in the form of problems that arise out of tourism. The paper will discuss in detail the positive and negative impact tourism in District Nainital along with suggestions for future.