Pranlukast hydrate (PRN), a cysteinyl leukotriene receptor antagonist (CysLT 1 ), is used to treat bronchial asthma. The objective of this study is to perform the isolation, characterization, and toxicity analysis of stress degradation products of PRN. In high-performance liquid chromatography (HPLC), the separation was achieved using a Phenomenex Gemini C18 (250 × 4.6 mm, 5 μ) column; the ammonium format buffer (50 mM), pH 4, with formic acid: acetonitrile (50:50, v/v) was used as a mobile phase at a flow rate of 1.25 mL/min; and the photodiode array detector was used for detection at 230 nm. The drug was subjected to stress degradation as per ICH Q1A (R2) and ICH Q1B guidelines. The drug was found to be labile in alkaline (62.48% degradation) and photolytic (liquid state) (7.67% degradation) conditions, whereas the drug was found to be stable in acidic, peroxide, photolytic (solid state), and thermal conditions. The characterization of the drug and its degradation products was achieved using liquid chromatography−electrospray ionization−quadrupole time of flight tandem mass spectrometry (LC-ESI-QTOF-MS/MS), and the degradation mechanism was proposed. There were two degradation products observed in alkaline conditions (DP6 and DP9), whereas six novel degradation products were observed in photolytic degradation products (DP1, DP3, DP4, DP5, DP7, and DP10). The developed method was successfully validated as per the ICH Q2 (R1) guideline. The isolation of the alkaline degradation product DP9 was performed using preparative HPLC, and it was found to be 96.8% pure degradation product. The characterizations of the isolated degradation product (DP9) and procured impurity were performed using MS/MS, NMR, and FTIR. The mass of the procured impurity and DP9 were observed to be 404 and 500 Da, respectively. The in vitro cytotoxicity study of the procured impurity and DP9 was conducted using a 3-(4,5 dimethylthiazol-2-yl)-2,5-diphenyl tetrazolium bromide (MTT) assay using an A549 cell line, and they were found to be cytotoxic at concentrations above 62.5 and 250 μg/mL, respectively. Furthermore, an in silico toxicity study was performed to predict the toxicity of all the major characterized degradation products of PRN using admetSAR software version 2.0. DP1, DP2, DP6, and DP10 were found to be hepatotoxic, mutagenic according to the micronucleus test, and aquatic toxic. We can conclude that the drug should be kept away from the direct exposure of light and the toxicity levels of DP1, DP2, DP6, and DP10 should be reduced below 0.1% to avoid their toxic effect.