The north eastern state of Arunachal Pradesh is home to a large number of tribal population of diverse liguistic and ethnic background. With increasing economic activity and consequently increasing complexity in production, exchange and level of development, concentration of population is migrating from point to another. Due to expansion of different administrative and other setup, pace of urbanization has stepped up, particularly after attaining statehood in 1987. In this paper, with a view to examine the situation and process of urbanisation, its socio-economic correlates and its consequences, an attempt has been made with the help of latest available data supplemented with suggestions, to improve the situation in the state.