The fingerlings of fish Labeo rohita were subjected to chronic (15, 30, and 60 days) and recovery (60 days) experiments for histopathological studies using sublethal concentrations (35.4%, 26.6%, and 17.7% v/v) of municipal wastewater of Tung Dhab drain, Amritsar, India. Control fish were maintained for same exposure periods using tap water. Scanning electron microscopic studies exhibited dose- and duration-dependent alterations on gill surface ultra-structure. Control fish exhibited functionally normal gills with normal mean degree of tissue change. Fifteen different types of lesions were identified out of which 9, 5, and 1 were of the stage I, II, and III, respectively. The mean degree of change values in the treated groups ranged from 14.8 +/- 0.5 (17.7%, 15 days) to 116. +/- 17 (35.4%, 60 days) demonstrated gill damages of slight to irreparable lesions. The recorded alterations were epithelial lifting and intraepithelial edema, reduction of water spaces, lamellar fusion, lamellar telangiectasia, swelling and fusion of filaments, sloughing of lamellar epithelium, hypertrophy and hyperplasia of mucous and chloride cells, and necrotic lamellae. The recovery experiments showed positive improvement as the intensity of damage was less than recorded for 60 days of treatment. This study clearly indicated toxicity of drain water to fish at cellular and organ level. The study recommends environmental agencies to make and enforce decisions regarding improvement of water quality of Tung Dhab drain, and further incorporating histopathological studies as an analytical tool.