Wetlands are critical ecosystems that bridge terrestrial and aquatic environments, playing a vi-tal role in maintaining biodiversity, supporting agriculture, and mitigating natural disasters. This study focuses on the Srinagar Dam in the Alaknanda River basin in the Pauri Garhwal dis-trict of Uttarakhand, India. The construction of the Srinagar Hydroelectric Project (SHEP) has transformed the local wetland ecosystem, with significant implications for the environment, society, and economy. The research examines the hydrological regime, assesses the environ-mental impacts, and explores sustainable management practices for the wetland. Through a mi-cro-level assessment of the wetland's hydrological dynamics, the study highlights the dual role of the dam in providing energy and water resources while posing challenges to local biodiversi-ty and social structures. The findings underscore the need for a balanced approach to wetland management that incorporates ecological conservation and addresses the local population's concerns. The study concludes with recommendations for policy interventions to secure the long-term sustainability of the wetland and its associated ecosystems while enhancing the re-gion's socio-economic benefits.