Peri-urban development is a complex phenomenon, which refers to varied forms of settlements on the fringes of cities. This study examines the emerging peri-urbanization in the Punjab (Pakistan) in the context of Lahore. Our findings posit that people flee from rural are as in desperation after their dreams and hopes for a better future in suburbs fade. So, an enduring livelihood and better service delivery in the urban settlements is a major attraction. The study further examines the key dynamics, drivers, and out comes of peri-urbanization based on Driver-Pressure-State-Impact Response (DPSIR) framework besides analyzing the change of livelihood and access to capital assets. Moreover, it explain show the regional inequality occurs in rural, urban and peri-urban areas. In peri-urban Lahore, a notable decrease in farm-related livelihoods was observed, which indicates a declining trend in the economic significance of agriculture. In many cases,it was observed that the peri-urban transition didnottend to any livelihood improvement because people from rural background usually lack the capacity to synchronize their livelihood-related skills with the urban ones. Moreover, it was learn that access to public service delivery depended upon their proximity to urban fringes. Households,who live closer to the urban centres,have a better access to public goods and services.Policy intervention is needed to increase positive interaction between urban and rural areas and take advantage of livelihood, service delivery, and governance opportunities arising out as an aftermath of the interaction.Peri-urban region can be managed by ensuring equal opportunities of accessing livelihood and public service delivery for the urban and rural side.