An attempt has been made in this study to assess the socio-economic impact of Bt cotton in Bathinda district of Punjab. The assessment is based mainly on primary data which is processed by applying regression analysis, Probit model and simple averages. On an average, 77.67 percent of total cropped area of the district is under Bt cotton cultivation as compared to 0.39 percent of Desi cotton cultivation. The decision of a farmer to adopt Bt cotton is significantly influenced by age and education of the farmer i.e. younger and better educated farmers prefer Bt cotton to Desi cotton. The study reveals that Bt cotton farmers are earning relatively higher net returns than that of Desi cotton farmers by Rs 19336 per acre due to relatively higher yield of 809 kg per acre as compared to Desi cotton yield of 420 kg per acre. The category wise analysis of Bt cotton farmers and Desi cotton farmers shows that farmers belonging to Others? category are earning more net returns than the Marginal and Small farmers. It was largely due to increased area under irrigation by Others? category of farmers. The social impact on the basis of perceptions of the sample farmers also revealed that Bt cotton is not adversely impacting health and reduced number of sprays has improved the quality of environment. Not a single farmer attributed the suicide cases to Bt cotton. Although Bt cotton cultivation is economically viable, yet higher seed cost hinders the pace of adoption by the Marginal and Small farmers. It is suggested that there is an urgent need for government to regulate the price of seeds of Bt cotton