<p>In India, the absence of uniform national regulations defining separation distances between residential and industrial zones has led to case-specific zoning decisions governed by local authorities based on industry type and pollution potential. Surat, the world’s largest synthetic textile hub, represents a mixed industrial residential landscape with densely populated residential and educational establishments situated near industrial sources, exposing both workers and children to high concentrations of respirable and fine Particulate Matter (PM). The present study assesses PM exposure and associated health risks in two population groups within a mixed industrial–residential area, providing evidence to improve zoning and regulatory policies. The study assessed 30-day personal exposure to respirable dust (aerodynamic diameter &lt; 5 µm) and fine PM (aerodynamic diameter &lt; 2.5 µm) among textile workers and school children in an industrial zone. Simultaneous monitoring of ambient air quality parameters (PM₁₀₀, PM₁₀, PM_2.5, PM₁, NO₂, O₃, and CO) was conducted. PM samples were analysed for 16 trace elements. Correlations among pollutants, elements, and possible sources in both locations were investigated. Carcinogenic, non-carcinogenic health risk, and lung deposition of PM were quantified for the exposed population. Results revealed that school children experienced 17.8% higher average 8-h exposure to respirable dust than industrial workers, while fine PM exposures were similarly high (137.50 ± 60.40 µg/m³ for workers; 134.50 ± 83.13 µg/m³ for children). Personal exposures exceeded ambient levels by 1.37 and 1.81 times at industrial and school, respectively. Children demonstrated significantly higher non-cancer risks and greater alveolar deposition than workers, indicating heightened vulnerability.</p>