The abysmal state of and challenges in municipal solid waste management (MSWM) in urban India is the motivation of the present study. Urbanization contributes enhanced municipal solid waste (MSW) generation and unscientific handling of MSW degrades the urban environment and causes health hazards. In this paper, an attempt is made to evaluate the major parameters of MSWM, in addition to a comprehensive review of MSW generation, its characterization, collection, and treatment options as practiced in India. The current status of MSWM in Indian states and important cities of India is also reported. The essential conditions for harnessing optimal benefits from the possibilities for public private partnership and challenges thereof and unnoticeable role of rag-pickers are also discussed. The study concludes that installation of decentralized solid waste processing units in metropolitan cities/towns and development of formal recycling industry sector is the need of the hour in developing countries like India.