Sikkim, “The Land of Mystic Splendour”, has gained its popularity as the 22nd state of India in the year1975. As per 2011 census it has become the second least populated state after Goa. According to the World Tourism Organization (UNWTO) “tourism that involves travelling to relatively undisturbed natural areas with the specified objective of studying, admiring and enjoying the scenery and its wild plants and animals, as well as any existing cultural aspects [both of the past and the present] found in these areas is defined as ecotourism”. The objectives of the study are (i ) to understand the concept of eco-tourism, (ii ) to know the eco-tourism practices in Sikkim, (iii) to understand the  challenges of eco-tourism practices faced by the state and initiatives taken to overcome this issues. The present paper is purely based on secondary data collected from various sources like Sikkim Tourism Policy, articles, journals, books etc. Sikkim is the first state which has framed an eco-tourism policy for sustainable development through resource conservation, cultural revival, economic development and diversification. Sikkim is recognized as a mountainous region with 28 major mountain peaks including Mount Kanchendzonga, the third highest peak in the world and Sinolchu, one of the most graceful peak in the world.  Besides 39 species of Rhododendron, 558 Orchid species, nearly 600 species of birds, more than 2000 species of moths, 658 species butterflies and roughly 4000 species of flowering plants, numerous medicinal plants make Sikkim an unparalleled destination of Ecotourism.This  uniqueness  helps the state to attract a large number of tourists across the globe. Lachen, Lachung, Dzongu are the spectacular areas for eco-tourism . Several challenges faced by the state  in smooth maintaining of eco-tourism practices which includes lack of infrastructure, lack of government  supports towards loans and subsidies, lack of proper telecommunication facilities,threats to indigenous cultures. This paper has also suggested some initiatives to overcome the problems like adequate infrastructure , and subsidised loan facilities, good net connectivity, proper training , active financial support,capacity building, marketing research, standard norms for tourists services, strict rules and regulations, code of conduct etc.The study also uncover that the importance of eco-tourism has been increasing by leaps and bounds. All this happen due to various socio-economic-cultural-religious and political scenarios. The gradual increases in the arrival of tourists have converted the state as a centre of mass tourism. But the tourism industry in Sikkim has been concentrated in a few pockets like Gangtok, Pelling, Lachung mainly . Besides these tourists’ pockets, hidden serene beauties have to be unearthed for the wholesome development of eco-tourism in this dragon land of the Sub-Himalayan Sikkim.

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Keywords: Eco-Tourism, UNWTO, Sustainable Development, Eco-System, Capacity Building, Marketing Research.