This research paper investigates the multidimensional process of rural transformation within Varanasi district, Uttar Pradesh, and its consequential environmental impacts. Moving beyond the district’s renowned urban spiritual core, the study focuses on its rural hinterland, where economic diversification, infrastructural expansion, agricultural intensification, and peri-urbanisation are reshaping livelihoods and landscapes. Utilising a mixed-methods approach that synthesises the latest secondary data from government publications (Census, 2011 & projections; CGWB, 2023), satellite-derived land use analysis (2013-2023), and existing scholarly work, the paper delineates the primary drivers of change. These include a marked shift towards non-farm employment, enhanced digital and physical connectivity, state welfare schemes, and the diffusion of urban consumption patterns. The environmental consequences are systematically analysed through the lenses of land and water resource degradation, agrochemical pollution, and burgeoning solid waste challenges. The findings reveal a critical "sustainability paradox," where socio-economic gains are increasingly offset by ecological strain, particularly groundwater depletion, soil health decline, and pervasive plastic pollution. The paper concludes that the current trajectory risks long-term socio-ecological vulnerability. It advocates for an integrated policy framework centred on promoting sustainable agricultural practices, implementing decentralised environmental governance, and fostering green rural entrepreneurship to reconcile development with ecological resilience.