This paper looks at the potential impact of medical tourism on the health workforce and health system in India. Besides the definite cost advantage, the presences of a well-trained and English speaking work force, a mix of modern and indigenous systems of medicine, and super specialty centers which boast of the best technologies available in the world are some of the factors in favor of India. Along with the corporate sector, the government of India has also responded to the growing sector of medical tourism in India, through the National Health Policy, 2002, and by issuing medical visas for tourists seeking treatment in India. As a medical visitor one might face certain legal challenges, like in the event of malpractice suits one might find it difficult to claim for damages, simply because insurance laws vary based on country. Even though hospitals and dental care clinics in India have insurance for medical malpractice, the actual settlement for incorrect diagnosis, negligence or incompetence might not be the amount will not be same. Likewise, there are several challenges in terms of legal aspects. .Through this paper, the author would be analyzing the challenges in regulation of the medical tourism in India and how there can be a balance between not restricting the business unreasonably and at the same time maintaining effective regulations and guidelines for the smooth functioning as well as development of the sector.