Ecotourism has become a popular form of “sustainable travel” tourism intended to support conservation and local communities. The United Nations even declared 2002 the International Year of Ecotourism, reflecting optimism about its potential. However, ecotourism is controversial because if poorly managed, it can harm the very ecosystems it aims to protect. Supporters see ecotourism as a way to fund conservation and bring benefits to local people, whereas critics point to problems like the carbon footprint of travel and greenwashing (branding tourism as “eco” without real action). This paper examines both views and argues that with proper management, strong policies, and true community involvement, ecotourism can be a genuinely sustainable path rather than an environmental paradox. This article will discuss its environmental and socio-economic impacts, real-world successes and failures, policy frameworks, and challenges like greenwashing and inequitable benefit sharing.