Wetland and its unique treasury of benefits have always provided a safe haven for a rich biodiversity of terrestrial, aquatic and avian species. Ansupa Lake, in the Banki subdivision of Cuttack, Orissa, is experiencing significant degradation due to surplus siltation, blockage of natural river water inflow-outflow system, unsustainable fishing, weed infestation, agricultural eutrophication. The present study aims to highlight the declining quality and water content of the lake during 1998-2020, investigating how LULC dynamism and its transition potential is adversely affecting the wetland. The effect of eutrophication and rapid weed infestation on the lake have been analysed as well as its effect on fish production. Additionally, the lake's role in recharging the local groundwater levels has also been assessed. The findings suggest that the agricultural and fallow land distribution has changed around the lake, while the waterscape has declined greatly and has experienced increased algal and turbid content, albeit marginal improvement, thereby adversely affecting fish population. Moreover, lake shrinkage and piezometric level fall have happened in tandem, highlighting the need to protect Ansupa and contribute to the broader discourse on wetland preservation in India and initiate policy initiatives to protect these crucial ecosystems.