The tourism industry significantly contributes to the global economy, with ecotourism emerging as a sustainable alternative to mass tourism. Ecotourism aims to balance economic development with environmental conservation, particularly in natural areas. This chapter explores its potential to promote biodiversity conservation, habitat restoration, and community engagement, while also addressing its challenges. Positive impacts include fostering ecological awareness and supporting local economies. However, rapid growth and inadequate management can lead to environmental degradation, such as overcrowding, pollution, deforestation, and sociocultural disruption. Infrastructure development to accommodate tourists often damages fragile ecosystems, and the carbon footprint of tourism-related activities exacerbates climate change. In developing nations like India, where ecotourism is viewed as an economic strategy, concerns about resource depletion and habitat destruction persist. The Maldives, a popular destination, experiences significant ecosystem stress due to rapid tourism expansion, including issues like exceeding carrying capacity, unsustainable infrastructure, and wildlife disturbance. Wildlife in these regions faces habitat destruction, disease transmission, and human-wildlife collisions. Mitigating these impacts requires adopting sustainable practices, such as setting carrying capacity limits, promoting responsible tourism, and involving local communities in forest management. Effective management, collaboration between governments, communities, and tourism operators, and innovative strategies like virtual reality for low-impact ecotourism can help balance environmental, economic, and sociocultural factors, making ecotourism a valuable tool for sustainable development and long-term ecosystem conservation.