Urban lakes are recognized as freshwater resources in urban areas and permanently have little water flow. It strongly supports to agricultural activities, fishery and provides water for domestic purposes. Sometimes, water is treated as a public good when it is abundantly available, but due to rapid growth of urbanization, industrialization, population, and urban lifestyle put more pressure on water bodies now water is a scarce resource. Currently, water is treated as economic good. Once, the urban lakes act as freshwater resources but presently act as wastewater recipients in urban areas. Therefore this paper discusses the importance of urban lakes and its ecosystem service, the various threats to urban lakes, and conservation methods. This paper will suggest to the Government should make a proper plan for the restoration of lakes in urban areas it will help to fulfill the water demand of people in the urban areas and after restoration Government should allocate funds for the maintenance of lakes.