The urban housing shortage is very huge and the supply of sustainable affordable housing is a greater challenge in developing nations like India. To fulfill the requirements of this huge urban housing shortage, it is necessary to formulate a system that will be able to supply affordable housing rapidly without compromising sustainability. Prefabricated construction technology (PCT) has the potential to provide significant environmental and economic benefits, hence gaining popularity as a viable alternative solution to on-site construction. There are many debatable issues associated with PCT prevailing among the stakeholders, which are preventing the adoption of PCT. Thus, this research aims to analyze the current scenario of PCT, its potential to supply sustainable affordable housing. It also attempts to address major challenges that need to be addressed with possible recommendations to enable the easy adoption of PCT as an efficient supply method for sustainable affordable housing.