Abstract: Groundwater serves as the principal freshwater resource in the arid and semi-arid regions of northwestern India, particularly in the Sri Ganganagar district of Rajasthan, where surface water is scarce, evapotranspiration rates are high, and monsoonal precipitation is erratic. Despite the introduction of canal irrigation through the Indira Gandhi Canal (IGC), the district continues to experience localized groundwater depletion due to over-extraction, inefficient irrigation practices, and limited natural recharge. This study evaluates spatial and temporal patterns of groundwater decline, recharge potential, and hydrogeologic constraints using a combination of field observations, groundwater-level monitoring, remote sensing data, soil permeability analysis, and GIS-based multi-criteria evaluation (MCE). Results indicate a significant decrease in groundwater levels ranging from 0.3 to 1.2 m annually in intensively irrigated zones, while canal-command areas show moderate stabilization. Recharge potential mapping reveals that only 17–22% of the district displays moderate to high recharge potential, mainly along paleo-channels, sandy loam tracts, and areas adjacent to canal systems. Clay-rich soils, high evaporation rates, and anthropogenic land-use changes reduce recharge efficiency. The study proposes an integrated groundwater management strategy emphasizing artificial recharge structures, crop diversification, controlled irrigation scheduling, and real-time monitoring systems. The conclusions offer science-backed recommendations for policymakers and stakeholders to enhance groundwater sustainability in the district.