Naxalism is the biggest challenge for the internal security of the country. This has not only affected tribal areas but also has its impacts of urban society and administration. Naxalism has created many challenges in front of system, administration and society. In the democratic country like India, there are many serious issues, but the Naxal problem has put question mark on the security of entire country. Entire administration is put on toes to tackle the Naxalism issue. In addition to this, Indian society which by and large believe in peace of co-existence is also facing serious heat of the issue. Naxalism on one hand has created negative impact on administration and society, while on the other hand there are some positive impacts too. When we see at administration in Naxal affected areas, we can easily sense that the issue has made difference in the working style of administration in these areas. This positive impact can be attributed to Naxal issue in the region