Abstract: Urbanization and industrial development have become responsible for deteriorating the aquatic environment through atmospheric deposition of waste and effluent discharge in the water bodies. The present study was aimed to analyze the effect of Paper Mill Effluent (PME) on the survival and hatchability of the fish eggs under laboratory condition. Four hundred fertilized eggs of Cyprinus carpio were exposed to different concentrations less than half of the LC50 (1, 2 and 4% v/v) of PME to investigate survival and hatchability. In control group percent mortality ranged between 0.375 (after 12 h) to 2.5 (after 40 h). In PME treated groups it ranged between 2.5-4.75 in 1% PME, 3.375 to 6.125 in 2% PME and 3.875 to 10.125 in 4% PME. Results showed that the PME entering the inland water is a serious environmental pollutant with high ecotoxical risks even in small concentration especially for fish species and their developmental stages.