Tourism has become one of the most dynamic sectors contributing to regional economic expansion in Kerala, and Thrissur District stands out for its cultural heritage, religious centres, vibrant festivals, and natural attractions. This study examines how tourism influences economic development in Thrissur by assessing its contribution to income generation, employment creation, infrastructure development, and local entrepreneurship. Using a mixed-methods approach that includes primary data from stakeholders and secondary data from government tourism reports, the study reveals that tourism significantly enhances livelihood opportunities, stimulates investment in transport and hospitality services, and encourages small business growth. However, challenges such as seasonal fluctuations, inadequate waste management, overcrowding during festivals, and uneven distribution of tourism benefits persist. The study emphasizes the need for sustainable tourism planning, community participation, diversified tourism products, and improved infrastructure to maximize the district’s economic gains.