Kashmir valley universally known as paradise on earth, has been tantalizing the lovers of nature and tourists from far and wide. The Lake Wular freshwater ecosystem is located about 35 km North West of Srinagar and also harbours a rich biodiversity. Wular not only acts as a safety valve for the Kashmir valley against floods but is also a key factor in maintaining biodiversity, production of food, fodder and other commercially important wetland resources. The recent studies reveal that conversion of Wular Lake peripheral area into agricultural land, construction of houses for human settlement, plantation of some tree species and related developmental activities have endangered the existence of this freshwater body. In this paper, we discuss the importance of lakes in view of the ecology as well as tourism point of view. Finally, we report the present condition of Wular Lake and suggest ways of improving the quality of water and Wular lake environment.