This study aims to examine the socio‐economic determinants and implications of caste‐based endogamy in Punjab, the largest province of Pakistan. It also measures the structural relationship between determinants and implications of endogamy. For this cross‐sectional study, 488 respondents were randomly selected from three Punjab province districts with inclusion criteria of being married within their caste. A path modelling and multigroup analysis were conducted using partial least squares structural equation modelling (PLS‐SEM). This study has found that social pressure, casteism, and fear of exogamy failure significantly influence mate selection in Punjab, which has socio‐economic implications. Social pressure and perceived easiness of endogamy less likely contribute towards economic implications. Similarly, casteism indicated a non‐significant influence on social implications. Overall, male and female respondents shared views on endogamy influencing determinants causing socio‐economic implications. This study concludes that caste‐based endogamy has a stronghold in the cultural patterns of Punjab, Pakistan, which restricts economic mobility, deepens the marginalisation of those from lower castes, and promotes casteism at community and institutional levels. This is one of the initial studies in Pakistani Punjab assessing the structural relationship between endogamy determinants and their social and economic implications.