Pulicat lagoon is the semi enclosed and second largest brackish water body in tropical India. The morphology, water quality and biological productivity of the lagoon had being subjected to noteworthy changes over the years under the influence of natural as well as human interference. Recent research have revealed that the lagoon losses its biological integrity due to more sedimentation from rivers predominantly in monsoon seasons, lagoon mouth closure, overfishing, pollution from various phenomena such as usage of motor boats, sewage disposal and aquaculture farms. In this work, evaluation of the status of this lagoon in terms of its biological, physical and chemical importance, its flourishing inheritance, the threats to this ecosystem and the knowledge gaps with the recommendations towards protection of its declining biodiversity are discussed.