Ayodhya’s eminence in India is multi-faceted. It’s not just historically important but holds significant importance culturally, politically, and economically. It has been a major source of fascination, especially for Hindus, and that interest has risen manifold after the recent construction of the Ram Temple. The current study delved into three major aspects concerning tourism in Ayodhya by discussing the challenges faced by the administration in catering to the tourism industry there, moving to the investigation of the employment opportunities due to increased flocking of tourists, and finally the stance of the government amidst all this. It was found that urban planning strategies are paramount to molding the tourism industry in Ayodhya. The government’s efforts in the direction of effective collaborations and working in harmony with the active players present there can work wonders to better the state of the city as well as the profitability of the tourism sector. One of the challenges that Ayodhya faces as a tourism spot is that of security which was also concluded by the paper. Sustainable tourism practices came out to be the highlight reflecting the need to improvise the current practices. The chi-square test was used to form inferences about the same.