It has been observed that Maharashtra has a bright prospect in tourism sector. Handicrafts, local music and dance reflect the cultural distinctiveness of the state. The state has a modern lifestyle, tourist attractions, and rich cultural heritage. There are lakes, open skies, mountains, and wildlife. West coast. Deccan Plateau, and Western Ghats are the three crucial biogeographic zones. Flora in state is heterogeneous. It has museums, trekking sites, dams, forts, forests, beaches, hills stations that attract tourists from all over the globe. Cuisine in the state varies with regions. Still there are many challenges before the tourism industry of the state. Therefore, the government should implement proper policies for tourism industry in the state. The researchers have relied upon secondary data to test this hypothesis. Statistical tests like regression and ANOVA have been used for data analysis. This paper discusses the status, prospects and challenges of tourism industry in Maharashtra. The researchers have concluded that the tourism sector has a significant contribution towards economic development of the state.Keywords: Hills station, Forts, Revenue, Tourism, and Tourist Places