Border trade plays a significant role in the economic and social development of border regions. South Dinajpur district of West Bengal shares an international boundary with Bangladesh, making it an important area for cross-border trade and interaction. This study examines the impact of border trade on the socio-economic conditions of the people living in the border areas of South Dinajpur. The research highlights the influence of trade on employment, transportation, market development, livelihood patterns, and cultural exchange. Both primary and secondary data sources have been used in this study. The paper also discusses the major challenges related to border trade, such as smuggling, infrastructure limitations, and security concerns. Finally, the study suggests measures for sustainable regional development through organised and legal border trade.