Prosopis juliflora is one among the top hundred recognized invasive species worldwide. The synergized effect of arid climatic conditionsand inherent soil salinity channeled this species’s intentional introduction in Banni grassland. Due to the allelopathic effect of this speciesthe existence of native grass species is in danger. However, in recent years, P. juliflora has replaced many of the native vegetation andis being recognized as an important species for the ecological stability of Banni grassland. Several ecologists have studied the role ofthis species in stabilizing the grassland ecosystem. In the present paper, its economic role is broadly reviewed with the vegetationcover maintained by it. In Banni grassland, the grass species grow only in monsoon and persists few months. For rest of the year (i.e. insummer) the green cover is maintained by P. juliflora. However, this species has provided remarkable livelihood opportunities. Apartfrom counting the negative effects, the counter-positive effects of the species have been recognized through this paper. P. juliflora hasslowly transformed the Banni grassland into woodland. It has also altered the micro-diversity in the soil and ultimately transformedthe whole ecosystem into new regimes. Eradication and reversion of P. juliflora spread is rather impossible. Hence, the managementaspects of P. juliflora that need to maximize its positive features are discussed.