Development achievement of Kerala in improving quality of life in terms of life expectancy, sex ratio, and literacy are well recognized. Kerala experience reveals that low-level economy can create a comfortable life and suggests a way of living lightly on the earth, using fewer resources, and creating less waste. This pattern of development that has been acclaimed by pronounced social scientists like Nobel laureate A.K Sen is currently replaced by neo-liberal economic policy. The implementation of this liberalized economic policy targeting economic growth raises various challenges to the earlier achievements, which is a major developmental concern of Kerala. This book briefly examines factors that have contributed to the evolution of non-traditional development pattern of Kerala; reasons for the current development challenges and development prospect of Kerala.