Well-known for its achievements in human development, the Kerala state of India has recently become a centre for local experimentation in sustainable and environment reviewing development activities. After discussing in detail Kerala’s geographical setting and its environmental resource base and the present status of its degradation, this work documents and examines critically the various initiatives taken at the state level and through people’s participation to foster sustainable development and environmental rehabilitation in Kerala. The study concludes with some important thoughts on the sustainability challenges facing Kerala, India and the world and the possible alternatives to meet them.