Rapid urbanization has brought alarming unmanageable, inevitable and persistent problems of slums in almost every city of the world. The slum life has not only affected developing countries but also the developed ones. The characteristic features of the slum areas are substandard, dingy houses of high density and congestion, overcrowding, insanitary conditions, absence of basic amenities like water supply, drainage and sewerage and disposal of garbage. It has been observed that the immigration to industrial centres, where large working manpower is required, is greater. Thus slums co‐exist with industrial urban centres. There is a great problem of slums and unplanned development in Bhilai, one of the important industrial cities of India, where more than half of the total population of the city is residing in slums. The paper considers the slums and associated problems in Bhilai.