It also acquired importance on the international tourism map for sheltering migratory birds. The lake has attracted many national and international environmentalists and experts to conduct research on different species of rare animals and birds.

In 1985, the Zoological Survey of India (ZSI) had conducted a survey of the lake. In its survey the ZSI stated that the lake shelters more than 200 varieties of aquatic plants, 225 species of fish, 43 types of aquatic shrubs, 61 types unicellular animals, 29 earthworms, 37 invertebrates, 30 types of 10-legged animals, 167 types of birds, 137 types of snails and 18 types of mammals.

However, in the past 20 years, due to natural changes and manmade causes, the number of animal and plant species have decreased. At present the biodiversity of Chilika is headed for destruction.

Near Arakhakuda and Magarmukh, sand have blocked the 30-km-long breach of Chilika lake. The saline seawater is not entering the lake and the brackish level of the lake is depleting continuously.

Lack of brackishness in the water is the main cause for the decreasing aquatic animals and aquatic shrubs. Prawns and other aquatic animals have been affected due to lack of aquatic shrubs. In September 2005, the Government decided to ban Alim nets and curb running of power boats to protect rare Irrawadi dolphins. But the measure is yet to be carried out. Due to poaching of migratory birds, the number of winged guests is also decreasing. If the Government does not take immediate corrective steps, the biodiversity of the lake will soon become a thing of the past.