During the post green revolution period, Punjab has emerged as an agricultural development state. As a result, increased availability of the farm level crop residues, green fodder due to intercrop cultivation and the mill-level residues of the processed products have strengthened the base for a diversified animal feed and eased supply position that might have reduced the cost for rearing the animals. While on the other hand, growing urbanization and income levels thereby increased purchasing power, higher literacy there by health and nutrition concerns, changing life styles might have been providing an impetus to an increase in the demand for this sector, so the study regarding the production and marketing of milk and milk products in Punjab was conducted. The study presented a survey conducted during 2006-2007 in the two districts (Ludhiana and Moga) of Punjab and the results obtained with regard to production, consumption and marketed surpluses, marketing channels for milk and milk products, factors determining channel choices and the various problems faced by the milk producers and the market players were discussed. Several conclusions were made.