Pulp and paper industry is considered among the highly resource intensive industries requiring abundant quantities of raw materials, chemicals, energy, and water. The industry continues to focus on minimizing the fresh water use and effluent discharges as a part of their move towards sustainable operating practices and closing up of the water loop. Currently, conservation and reuse of water resources have emerged as an important component of proper environmental management in the paper industry owing to the shortage of water and conflicts over water usage. The ultimate goal of the industry is to have effluent free unit operations aimed towards sustainable operation with no negative impact on process efficiency, productivity quality and environment. The traditional wastewater treatment technologies that are used in the paper mills are not able to remove recalcitrant contaminant materials; therefore, advanced wastewater treated technologies are required to either improve the wastewater biodegradability or its final quality. Thus, amid the rising water scarcity, poor internal process water quality and concern for compliance of the prescribed charter’s norms, the paper industry’s commitment to overall water conservation and management require the adoption of the innovative wastewater treatment strategies such as membrane filtration technology and combination of other options. The chapter discusses the status of Indian paper industry, issues and challenges on the water and wastewater management front with a focus on membrane filtration technology with a strategic approach including the process optimisation and appropriate membrane configuration to make it an environmental friendly and a green technological option for treatment of the paper mill effluent.